Government selling ethanol blended petrol in 10 states

New Delhi: Petroelum minister Murli Deora today that the government was selling petrol blended with five per cent ethanol in 10 states as non-sugarcane producing states like Madhya Pradesh, Gujarat and West Bengal have imposed taxes and levies on ethanol from other states.

He told the Rajya Sabha in a written reply that the programme was currently operational in Uttar Pradesh, Uttaranchal, Delhi, Goa, Karnataka, Tamil Nadu, Jharkhand, in parts of Maharashtra, Andhra Pradesh, and Bihar."

Deora said that the programme that was launched to bring down oil imports has not been implemented in Chhattisgarh, Madhya Pradesh, Gujarat, Haryana, Himachal Pradesh, Orissa, Punjab, Rajasthan, West Bengal, Kerala and in Union Territories of Daman and Diu, Dadra and Nagar Haveli, Chandigarh and Pondichery due to various taxes and levies imposed by respective state governments on ethanol from other ethanol producing states.

He said last year the government had directed oil companies to sell petrol blended with 5 per cent ethanol throughout the country from 1 November, 2006. The programme was, however, not implemented in Jammu and Kashmir, Andaman and Nicobar Islands and Lakshadweep due to problems of logistics.

Deora also disclosed that state-run oil firms plan to invest Rs38,900 crore in 2007-08, up from Rs36,800 crore in the previous year. The government had provided a subsidy of Rs2,549 crore on LPG and kerosene besides oil bonds worth Rs24,121 crore to compensate oil PSUs for selling fuel below the cost, he said. During 2007-08, Rs 2,680 crore had been provided for LPG and kerosene subsidy.