Bihar Government Urges Centre to Increase Ethanol Purchase Quota
The Bihar state government has formally requested the central government to enhance its ethanol procurement quota from the state. Deputy Chief Minister Samrat Choudhary is scheduled to address this critical issue directly with central authorities during an upcoming visit to Delhi, according to a statement from Industries Minister Dilip Jaiswal on Monday.
MLAs Raise Alarm Over Ethanol Factory Survival
During the Question Hour in the Bihar Legislative Assembly, MLAs from multiple political parties expressed grave concerns regarding the struggling ethanol industry in the state. JD(U) MLA Shyam Rajak, BJP legislators Rajnish Kumar and Jibesh Kumar, along with RJD's Kumar Sarvajeet, highlighted reports indicating that numerous ethanol factories are on the brink of closure. They attributed this precarious situation to an alleged reduction in the Centre's purchase quota.
The MLAs collectively warned that if the quota issue is not resolved promptly, it could lead to widespread factory shutdowns, resulting in significant job losses across Bihar. They further questioned whether the state government intends to negotiate with petroleum companies to purchase the surplus ethanol, especially given Bihar's increased maize production which feeds these facilities.
Minister Denies Closure Reports, Details Incentives
In response, Industries Minister Dilip Jaiswal firmly denied the reports of impending factory closures. "It is a misleading propaganda that ethanol factories are closing," Jaiswal asserted. He elaborated that under the leadership of Chief Minister Nitish Kumar, the state government has disbursed approximately Rs 1,700 crore as incentive money to support industries. "The very ethanol factories being discussed on social media have also claimed these financial incentives," he added, countering the narrative of an industry in crisis.
Discrepancy in Production Versus Procurement
Minister Jaiswal provided specific data to clarify the situation. He revealed that the central government has a Memorandum of Understanding (MoU) to purchase only 35.28 crore litres of ethanol from Bihar. However, the state's production capacity exceeds 50 crore litres per month, creating a substantial surplus.
Jaiswal acknowledged that logistical challenges faced by oil marketing companies, such as inadequate warehousing facilities, have contributed to the reduction in their procurement quotas. This admission points to a systemic issue beyond mere policy, involving infrastructure constraints that limit the offtake of Bihar's ethanol output.
The ongoing dialogue between the state and central governments, highlighted by Deputy CM Choudhary's planned intervention in Delhi, underscores the economic importance of the ethanol sector for Bihar. The resolution of this quota dispute is crucial for sustaining the industry, protecting employment, and utilizing the state's enhanced agricultural produce effectively.
