Cabinet for sale of ethanol-blended petrol

None | ByAmitabh Shukla, New Delhi
Nov 21, 2006 11:48 PM IST

The decision comes in the wake of the notification issued by the Ministry of Petroleum, reports Amitabh Shukla.

Pitching for conservation of petrol in the city in the face of increasing consumption by motor vehicles, the Delhi Cabinet on Tuesday cleared the decks for sale of 5 per cent ethanol blended petrol in the city.

With the decision, followed by a notification soon, the price of ethanol blended petrol would come down by 25 paise per litre.

HT Image
HT Image

The Cabinet also decided to waive off special duty and other related fees on ethanol under the Punjab Excise Act 1914 as in force in Delhi. "This decision has been taken keeping in view the need of conservation of petroleum fuel and to increase the use of sustainable fuel," Chief Minister Sheila Dikshit said after the Cabinet meeting.

The Cabinet decision comes in the wake of the notification issued by the Ministry of Petroleum, Government of India under the Essential Commodities Act on 20th September 2006.

The notification said that under the Essential Commodities Act, "subject to commercial viability, the Oil Marketing Companies shall sale 5 percent ethanol blended petrol as per Bureau of Indian Standards specifications in 20 states and four Union Territories, including Delhi." 

The notification of the Centre came into force November 1.  The Cabinet note said that about 48,000 kilolitres of ethanol may be brought to Delhi per year and the state government would have to forego an estimated amount of Rs 20 crore per year on account of facilitation of ethanol blended petrol sale in Delhi.  “This would also go a long way in further curbing pollution,” the note said.

The new price of ethanol mixed petrol would be effective from next week. “This would be sent to the Lt. Governor for approval and then notified in the official gazette,” said a senior official.

The Cabinet also gave its nod for commissioning of 1000 MW Pragati-III gas based power project at Bawana. To be built at a cost of Rs 4500 crores,  the Bawana plant would be operational after 2009 when gas supply would commence.

Dikshit said, "It is extremely important for the Delhi government to increase its self-reliance in power generation from plants located within Delhi so that it is not vulnerable to the vagaries of the Northern Grid and the political circumstances which influence inter-state supply of power".

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