Centre asks Punjab govt to reconsider fee levied on ethanol production
The Union Ministry of Petroleum and Natural Gas has written a letter to Punjab government asking it to reconsider the fee which has been levied in the state's excise policy on production of ethanol.
The letter, accessed by The Indian Express, has been written by Praveen M Khanooja, Additional Secretary in the petroleum ministry to Punjab Chief Secretary KAP Sinha on April 8.
The letter states that the provision to levy Regulatory Fee (Ethanol Permit/Pass fee) in Excise Policy 2025-26 may restrict free movement of ethanol within and outside the state, which will further increase the cost of ethanol blended petrol.
'It has been brought to the Ministry's notice by Oil Marketing Companies (OMCs) that as per the excise policy of Punjab state, there is a substantial increase in the license fee, annual renewal fee and capacity enhancement fee for Distilleries (Part D, Para 6 a & b of Punjab's Excise Policy). Also, Para 29 'Regulatory fee on ethanol' of the Policy makes a provision to levy Regulatory Fee (Ethanol Permit/Pass fee) @ Rs. 1 per Bulk Litre,' read the letter.
The petroleum ministry pointed out that the Union government has been promoting ethanol blending in petrol to give boost to domestic agricultural sector and associated environment benefits.
'Over the last one decade, ethanol blending has improved from 1.5 per cent to more than 18 per cent and the country is on course to achieve the 20 per cent blending target by Ethanol Supply Year (ESY) 2025-26. Punjab has made significant contributions to the success of this programme by achieving a blending percentage of 18.8 per cent in ESY 2024-25, as on March 2025,' the letter adds.
It goes on to add apart from augmenting distillation capacities of existing plants, dedicated ethanol plants are being commissioned in Punjab providing employment opportunities and giving boost to circular economy.
'The increased fee in the Excise Policy 2025-26 is likely to increase the cost of ethanol blended petrol, affecting the viability of ethanol producers/suppliers and OMCs. The provision to levy Regulatory Fee (Ethanol Permit/Pass fee) in Excise Policy may restrict free movement of ethanol within and outside the state, which will increase the cost of ethanol blended petrol,' Khanooja says in the letter.
The petroleum ministry official urged the Chief Secretary to review the Excise Policy and reconsider any levy/fee on fuel ethanol production/consumption/transportation in Punjab to facilitate smooth off take and free movement of green fuel ethanol for the benefit of environment and farmers.
The dual benefits of ethanol blending — reducing carbon emissions and supporting the agricultural economy — have been highlighted by experts since long.
By promoting maize cultivation, the initiative aims to provide farmers with an alternative crop, ensuring income stability while contributing to environmental sustainability through cleaner fuel alternatives.
Ministry officials say achieving the 20 per cent ethanol blending target will reduce reliance on fossil fuels, lower greenhouse gas emissions, and align with India's climate goals.
'Increased maize cultivation and ethanol production will create employment opportunities in Punjab, particularly through the establishment of dedicated ethanol plants. Encouraging maize cultivation may diversify Punjab's agricultural landscape, reducing dependence on traditional crops like wheat and paddy, which could lead to more sustainable farming practices,' the official added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
‘New SOPs, higher spending limit set to empower ULBs'
Lucknow: In a significant step to strengthen the financial and administrative autonomy of urban local bodies (ULBs), the urban development department has increased the spending limits. By revising the standard operating procedure after a gap of four years, the department has made provisions to provide additional flexibility and authority to nagar palikas (city councils) and nagar panchayats (town councils). "Increasing their spending limit, the govt has given the authority to nagar panchayats to undertake works up to Rs 1 crore while nagar palikas can take up works up to Rs 2 crore. Their spending limit was capped at Rs 40 lakh so far," an official said. To uphold the integrity of urban development projects, the revised SOP mandates a shared accountability framework. In cases of substandard construction or measurement discrepancies, 50% of the financial recovery will be made from the contractor and the remaining 50% from the engineers and administrative officers concerned. The recovery process will be overseen by the district magistrate and, if required, recovery would be done from the erring contractors and companies by attaching their properties as per the revenue recovery code and laws. The newly introduced SOP also paves way to acclerate the pace of development with the help of latest technology and tools. Sharing an example, a senior officer from the department said that a method that encourages recycling of old debris and bitumen for road construction would be followed. Urban bodies have been instructed to maintain ward-wise road directories, complete documentation, and conduct GIS mapping of infrastructure for long-term monitoring and project execution. Principal secretary, urban development, Amrit Abhijat said that the SOP and reforms notified recently would not only enhance the financial independence of local bodies but also improve the quality, transparency, and effectiveness of urban governance.
Time of India
an hour ago
- Time of India
Toll collecting firm under scanner for evading stamp duty worth Rs 63 cr
Lucknow: A private company engaged in collecting toll on the national highway in eastern UP is under scrutiny for duping the local administration to the tune of crores. The fraudulent activity was detected more than two years after the private entity was awarded the contract for collecting the toll. Tired of too many ads? go ad free now According to officials, a company engaged to collect money from motor vehicle owners for using the national highway stretch in Bhadohi did not pay the required stamp duty to the local administration. Roped in to manage the toll plaza over national highway 19, which connects eastern UP with Bihar and onwards, the company was supposed to pay a sum of about Rs 63 crore to the stamp and registration department as duty. The charges were incurred for taking the land on a 15-year-long lease to collect the toll from road users. The agreement was signed between the stakeholders in March 2023, said officials. However, it was later detected that only Rs 100 was paid as stamp duty to the state coffers. According to the officials, a complaint case has been filed before the local magistrate to initiate action and prosecute the offenders.
Time of India
an hour ago
- Time of India
Lucknow becomes UP's 1st ‘zero fresh waste dump' city
Lucknow: With the launch of its third fresh waste processing plant at Shivri West, Lucknow has become the first city in Uttar Pradesh to achieve 100% processing of daily waste, officially earning the status of a 'zero fresh waste dump' city. The newly inaugurated facility has the capacity to handle 700 metric tons of fresh waste daily. Combined with the city's two existing plants, Lucknow now processes all of its daily waste—amounting to over 2,100 metric tons—without any dumping. The existing daily waste generation of the city is 2,000 metric tons. The plant was inaugurated by urban development minister AK Sharma and mayor Sushma Kharakwal. According to Sharma, the Lucknow Municipal Corporation (LMC) received approximately Rs 100 crore in departmental support and was authorised to partner with private entities through tenders. He noted that nearly two-thirds of the city's 19 lakh metric tons of legacy waste was processed, converting a decades-old dumpsite into usable land. Around 13 lakh metric tons of waste was cleared, freeing up 25 acres, with another 15 acres expected to be cleared in the coming six months. Kharakwal stated that the LMC processes waste into three key outputs: Refuse-Derived Fuel (RDF) for use in cement and fertiliser industries, construction and demolition (C&D) waste for infrastructure reuse, and compost for agricultural purposes. The mayor added that this integrated approach positions Lucknow among a limited number of cities globally that process 100% of their daily waste. Sharma highlighted initiatives such as "UP Darshan Park," where replicas of monuments like the Taj Mahal and Red Fort have been built using recycled waste. A similar concept was also implemented in Prayagraj's Kalawati Park. He also mentioned that delegations from Brazil and Andhra Pradesh recently visited the site, indicating growing interest in the city's waste management model.
