Notes & Notifications
No. 14/2003 Central Excise
New Delhi, 1 March 2003
...the Central Government hereby exempts motor spirit (commonly known as petrol) manufactured in and cleared from an oil refinery or cleared from a registered warehouse, intended for use in ethanol blended petrol, that is, a blend,
a) consisting, by volume, of 95% motor spirit, and of 5% ethanol; and b) conforming to Bureau of Indian Standards (BIS) specification 2796,
from so much of the duty of excise leviable thereon under the said Schedules, as is in excess of the duty that would have been leviable on such goods under the said Schedules, if sold by the manufacturer for delivery at the time of removal of such goods or at any other time nearest to the removal of such goods, where the manufacturer and the buyer are not related and the price is the sole consideration.
No. 15/2003 Central Excise
New Delhi, 1 March 2003
...the Central Government, being satisfied that it is necessary in the public interest to do so, hereby exempts 5% ethanol blended petrol, that is, a blend, from the whole of the additional duty of excise leviable thereon.
No. 16/2003 Central Excise
New Delhi, 1 March 2003
(Amendment to No. 28/2002 dated 13 May 2002)
In the said notification, the following shall be inserted up to and inclusive of the 29th day of February, 2004:-
...Motor spirit when intended for use in ethanol blended petrol, that is, a blend, subject to following the procedure laid down in the Central Excise (Removal of Goods) at Concessional Rate of Duty for Manufacture of Excisable Goods Rules, 2001.
Five rupees and seventy paise per liter
...5% ethanol blended petrol, that is, a blend,
Nil.
Both these notifications shall remain in force up to and inclusive of the 29th day of February 2004.
Alok Shukla, Deputy Secretary to the Govt of India
Ministry of Finance
(Source: http://www.cbec.gov.in/cae/excise/cx-act/notfns-2k3)
Sugar Development Fund
The Government has amended the Sugar Development Fund Act, 1982 to enable loans to be given from the Sugar Development Fund to any sugar factory or any unit thereof for the production of anhydrous alcohol or ethanol from alcohol. This amendment to the Act made in May 2002, has made available financial assistance on easy terms to sugar factories for setting up facilities for producing ethanol. The Government has also framed the rules in this regard (as per the notification below). It is expected that more sugar factories would be encouraged to produce ethanol from alcohol after availing financial assistance from the Sugar Development Fund.
Part II, Section 3, Sub-section (i)
New Delhi, 17 December 2002
In pursuance of the Sugar Development Fund Act, 1982, the Central Government hereby creates and requires to be maintained twenty lakh tons of sugar as the quantum of buffer stock sugar for a period of one year on and from 18.12.2002 to 17.12.2003.
New Delhi, 9 January 2003
...on the basis of the basic minimum price of sugarcane at Rs 69.50 per quintal linked to a basic recovery of 8.5% sugar subject to a premium of Rs 0.82 for every 0.1% point increase in the recovery above that level, the Ministry hereby fixes the price as the minimum price that shall be payable by the owners of the vacuum pan process sugar factory for sugarcane delivered at the gate of the factory or any purchasing center for the sugar year 2002-03 ending 30 September 2003, subject to the rebates payable.
(As per the Notification issued at New Delhi by the Department of Food & Public Distribution, Ministry of Consumer Affairs, Food & Public Distribution)
(Source: Cooperative Sugar Journal, January 2003, Vol. 34, No. 5)
For details, please contact:
Director - SDF
Ministry of Consumer Affairs & Public Distribution
Directorate of Sugar
Department of Sugar & Edible Oils
Room # 183, Krishi Bhawan
New Delhi 110 001; Tel: 2338 2625
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State Update
In Andhra Pradesh (AP), 25 distilleries are in existence, out of which six are not working for various reasons such as non-clearance by the State Pollution Control Board or uneconomical operations, financial difficulties, etc. Out of the other 19, twelve are captive distilleries owned by sugar factories that have their own molasses as raw material, and seven are non-captive distilleries that purchase molasses from outside sources.
Due to market conditions, the captive distilleries are running at their full capacity, whereas non-captive distilleries are running at a maximum of 50 to 60% production capacity only.
Among the above running 19 distilleries, KCP Sugar & Industries, with a 25,000 liter per day capacity, has already started producing 20,000 ltrs per day. So far this is the only distillery that has put up an ethanol manufacturing facility in Andhra Pradesh.
Jeypore Sugars, with a 40,000 liter production capacity in two distilleries, is putting up a 30,000 liter plant that is expected to begin production by end-March 2003. Another three distilleries are actively pursuing proposals to put up ethanol plants by mid-2003.
Even after considering all these schemes, the total ethanol production in AP can be around 3 crore ltrs only. The others are still hesitant to go in for ethanol production as the market does not seem to be lucrative. Probably by June/July 2003, appropriate decisions may be taken by them to meet the rising demand for ethanol-doped gasoline after the price of ethanol is finalized.
Courtesy: Mr ADL Prasad
President
The Andhra Pradesh Distiller’s Association
c/o The Jeypore Sugar Co. Ltd.
VVS Sugars, Chagallu 534 342, Andhra Pradesh
Tel: 08813-71424; Fax: 08813-71442
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