Pricing Methodology

  1. The ex-mill price of ethanol derived from damaged food grains unfit for human consumption will be decided by OMCs. A single ethanol price will be declared for all the varieties of damaged food grains, unfit for human consumption category.
  2. After the approval of NBCC for utilization of surplus food grains, the price of ethanol derived from such surplus food grains [excluding sugar] will be decided by OMCs. A single ethanol price will be declared for all the varieties of surplus food grains category.
  3. The annual ex-mill price of ethanol for an ESY, derived from sugarcane based raw materials viz. C heavy molasses, B heavy molasses, Sugarcane juice / Sugar / Sugar syrup shall be declared by Government.
  4. Additionally, GST as applicable and transportation charges as decided by OMCs shall be payable to the ethanol suppliers.

Following shall be the Basic Rates for Ethanol procurement by OMCs for the period (01.11.2023 To 31.10.2024)

Name of Feedstock used for producing Ethanol Basic Rate for Ethanol (Rs. Per KL) *

Sugarcane Juice / Sugar / Sugar Syrup- 65,610
B-Heavy Molasses- 60,730
C-Heavy Molasses- 49,410
Damaged Food Grain- 64,000
Maize- 66,070
Surplus Rice sourced from FCI- 58,500

*GST as per actuals & Transportation shall be paid extra.
# These are prices applicable for ESY22-23 and the Prices declared by MoPNG for ESY23-24 will be applicable for ethanol procured thru this tender and subsequent cycles of ESY23-24

Transportation Rate

The following transportation rates shall be applicable for supply of ethanol during ESY 23-24:

Slabs (One way Distance in KM)TPT Rate in Rs./KL
0 - 75 KM273
>75 - 200 KM583
>200 - 300 KM841
>300 - 400 KM1150
>400 - 500 KM1458
>500 - 600 KM1767
>600 - 700 KM2075
>700 - 800 KM2384
>800 - 900 KM2961
>900 - 1000 KM3301
>1000 - 1100 KM3794
>1100 - 1200 KM4133
>1200 KM4133 + 3.44 Rs/KL/KM

#These rates are based on Mumbai City HSD Retail Selling Price as on 31.10.2023 i.e. 94.22 Rs/Ltr and shall be considered as benchmark rate for subsequent quarter wise escalation / de-escalation. *Distance slabs of the distillery unit of Bidders is the one-way distance in KM, between OMC in-gate and the Distillery unit’s out-gate taken as per google API. In a cluster if there are more than one OMC, the OMC in-gate lat-long that will be considered for determining the distance shall be as per the following priority: IOCL, BPCL, HPCL and MRPL i.e. if in a cluster all 4 OMCs are there then IOC lat-long will be used for distance calculation.

An incremental 10% transportation rate shall be payable on each slab for supply to OMC hardship / hilly locations i.e. all locations in the states of Jammu & Kashmir, Himachal Pradesh and North Eastern States (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim).

Escalation clause linked with HSD rate is applicable on above mentioned transportation rates. The transportation rates under above slabs shall be revised by OMCs on quarterly basis. The formula for the same shall be as under:
Inc. in Rs. /KL / Km = Increase/decrease in 1 Litre of HSD RSP at Mumbai incl. of taxes / 32 KL x 3.5

The transportation rates shall be reviewed / revised on quarterly basis (ESY) if there is a variation of minimum 2% in Diesel rates from last revision benchmark rate. Benchmark rate as on 15th of the preceding month of ESY quarter shall be considered for revision in transportation rates in subsequent quarters.

Thus, Benchmark rate as on 15.01.2024 (average RSP of Diesel in Mumbai for the previous 3-month period i.e., from 16.10.2023 to 15.01.2024) will be considered for rate revision for Q2 ESY 2023-24 and will be compared with the current Benchmark rate i.e. 94.22 Rs./Ltr.

Google API distance output of distillery out-gate to OMC in-gate for all clusters will be shared with all the registered vendors on their e-mail ID and will be valid for the ESY.