EXCLUSIVE! Modi govt may announce big relief to ethanol manufacturers, sugar relief package next week
With an aim to reduce oil import expenditure, the Prime Ministers Office (PMO) has called a high-level meeting to thrash out a booster dose for ethanol manufacturers and announce special sugar relief package by next week.
With an aim to reduce oil import expenditure, the Prime Minister's Office (PMO) has called a high-level meeting to thrash out a booster dose for ethanol manufacturers and announce special sugar relief package by next week. Zee Business reporter Chetan Pathani reported exclusively that the high-level meeting is underway at the PMO that includes Finance Ministry officials, PSU bank representatives, oil marketing companies and cane sugar representatives. Pathani said that the meeting is mulling the ways it can help ethanol manufacturers in India and increase number of players in the sector.
Speaking on the government move and its impact on the stock market Zee Business Managing Editor Anil Singhvi said, "This move by the Modi government will definitely have a positive impact on the stock market, especially on those listed companies that are in the ethanol manufacturing business." Singhvi said that Praj Industries and India Glycols shares are going to get benefit of it if the Modi government announces any such benefit for the ethanol manufacturing companies.
Highlighting upon the major topic around which the high level meeting in PMO was underway, Pathani said, "The meeting comprises all stake holders related to the ethanol manufacturing. The Government of India wants to help ethanol making companies by allowing some lending assistance so that the existing players can expand their business and new players come forward in ethanol manufacturing business."
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Pathani said that the main aim of this meeting is to decrease India's oil import by increasing ethanol blending in petrol. He said that the Indian government aims to meet 10 per cent ethanol blending in petrol by 2022 and targets to double this to 20 per cent by 2030. Pathani also highlighted that last year Indian Government managed to reduce its oil import bill to the tune of Rs 7,000 crore through ethanol blending in petrol.
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Pathani also reported that ethanol manufacturing is directly related to the sugar industry and hence, the government may announce a special relief package for the sugar industry next week.
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