Government-run oil marketing companies – Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) – have entered into a long-term purchase agreement for upcoming dedicated ethanol plants across India, said the Ministry of Petroleum & Natural Gas.
The first set of Tripartite-cum-Escrow Agreement (TPA) was signed among oil marketing companies (OMCs), project proponents and banks of the respective ethanol plant projects in presence of Sandeep Poundrik, Principal Secretary, Department of Industries, Government of Bihar, Ashwani Bhatia, MD, State Bank of India and Sukhmal Jain, Executive Director I/C, Marketing Corporate, BPCL.
State Bank of India, Indian Overseas Bank and Indian Bank are three banks who are involved in this tripartite agreement with OMCs and project proponents. The agreement is designed to ensure that payment received by Ethanol plants is utilized for servicing the finance extended by these banks.
As per the agreement, ethanol produced by these dedicated ethanol plants shall be sold to OMCs for blending with petrol as per the Government of India’s Ethanol Blended Petrol (EBP) programme.
