Know the Process
Documentation Required for Ethanol Production
Before starting the ethanol manufacturing business, the entrepreneur will need to obtain an environmental clearance certificate. This clearance typically takes around 1-2 years. After obtaining this clearance, a No Objection Certificate (NOC) is received from the State Pollution Control Board. Documents required for obtaining this certificate are as follows:
- State Excise- Ethanol Production
- CTO (Consent to operate)
- PESO (The Petroleum and Explosives Safety Organization)
- Certificate of Incorporation & Business Commencement Certificate
- Fire NOC
- Permission from CPCB - plant operation
- NOC (No Objection Certificate): It is issued by the respective district authorities for the production plant of Ethanol. These local bodies include district and village authorities.
- IEM licenses for Sugar, Cogen & Ethanol
- Water lifting permission from nearby water sources such as the Delhi Jal Board in New Delhi.
- State electricity board permission for electricity supply
List of Additional Documents for Ethanol Production in India:
- Declaration by the EIA Consultant & its Authorization
- Land Documents along with the Diversion Order for Industrial us
- Memorandum & Articles of Association
- Letter of Intent received from oil Marketing Companies
- Steam, Water Condensate, Fuel & Power Balances
- Plant Layout
Cost of Ethanol Production Plant
The ethanol production plant, Automatic Ethanol Plant, has a capacity of 10 KLPD, with costs starting from 20 Crores depending on the manufacturer. The initial investment is estimated at around Rs 60 Crores, encompassing setup, machinery, equipment installation, and labor costs. Given that this plant requires a larger area, approximately 1 lakh sq. meters, it is advisable to seek cost-effective land options, allowing for prudent investments in other areas. The investment also covers the procurement of the raw material, which is sugarcane. Acquiring sugarcane directly from farmers or wholesalers will also necessitate significant financial resources.
Pre-requisites for Long term registration (Enrollment) & Special conditions for (EoI):
INDIAN OIL CORPORATION LIMITED (IOCL), BHARAT PETROLEUM CORPORATION LIMITED (BPCL), HINDUSTAN PETROLEUM CORPORATION LIMITED (HPCL), public sector enterprises, through a tender, intend to procure Denatured Anhydrous Ethanol meeting IS 15464:2022 specifications(Subject to revision from time to time) from indigenous manufacturers at various depots, terminals, and installations of 14 IOCL/BPCL/HPCL across the country. IOCL, BPCL & HPCL shall be referred to as OMCs (Oil Marketing Companies).
The Central Procurement Organization (Marketing), Bharat Petroleum Corporation Limited, on behalf of OMCs, invites expressions of interest to enroll/register bidders who are indigenous manufacturers of Denatured Anhydrous Ethanol conforming to specification IS 15464:2022 (Subject to revision from time to time), subject to the renewal of requisite licenses/approvals as detailed in this EoI. Pre-requisites for long term Registration (enrolment) of Indigenous manufacturers for supply of Denatured Anhydrous Ethanol to OMCs:
i) Requirement 1: The participating party/bidder must be an Indigenous Manufacturer of Denatured Anhydrous Ethanol, such as Sugar Mills with Ethanol plants, Standalone distilleries producing Ethanol from molasses/sugarcane juice, or Distilleries producing Ethanol from damaged food grains such as broken rice, wheat, etc., which are unfit for human consumption, maize complying with specifications as per IS 15464:2022.
ii) Requirement 2: Bidders must possess a valid Pollution Control Board (PCB) Consent to Operate (CTO) as of the original due date of the EoI. The bidder must also hold a valid Consent Order - Consent to Operate, clearly mentioning the production of Absolute Alcohol or ENA (Extra Neutral Alcohol) or SDS (Special Denatured Spirit) or Alcohol or RS (Rectified Spirit) or Spirit or Ethanol or Denatured Anhydrous Ethanol.
iii) Requirement 3: Bidders must possess a valid “Petroleum and Explosives Safety Organization (PESO)” license for the storage of class A products as of the original due date of this EoI, clearly mentioning the storage capacity of Class-A products issued by PESO or a valid Safety Precautions letter issued by PESO.
Submission of Distillery’s Address with Latitude & Longitude: All the Bidders are required to provide the capacity, address details, and Lat-Long (Latitude and Longitude) of their supplying plant/distillery (Out Gate) as per Google Maps in the technical bid section, along with the type of feedstock (Sugar Molasses based/grains including FCI Rice based). To obtain the Lat-Long of any place/building in Google Maps, simply place the cursor over the distillery location and left-click to place a pointer, which will display the Lat-Long. The two numbers are to be taken exactly as Lat-Long without any conversion.
Participation Process
Supplier Registration
OMCs will publish Expression of Interest (EoI) for registration against which a supplier can apply. While applying for EoI, the new suppliers will have to provide information regarding the Supplier Distillery Name, Email ID and Phone Number
Bidding
After completing the registration process, the supplier will be considered for the bidding process. The bidding process will be on BPCL e-procurement platform
Allocation
Allocation of quantities against bids is done for the OMC locations against which the suppliers need to deliver
Ethanol Supply
Once the supplier provides their basic details and applies to EoI, OMC Member will approve the request. After approval, email will be sent to the registered Email ID with the login credentials. Once the supplier logs in, the supplier will have to provide various details to complete the registration