New Delhi: Government is selling petrol doped with 5% ethanol only in 10 states as non-sugarcane producing states like Madhya Pradesh, Gujarat and West Bengal have imposed taxes and levies on import of the environment-friendly ethanol from other states.
“The programme is currently operational in ten states - Uttar Pradesh, Uttaranchal, Delhi, Goa, Karnataka, Tamil Nadu, Jharkhand, Maharashtra (partial), Andhra Pradesh (partial) and Bihar (partial),” Petroelum Minister Murli Deora said in a written reply in Rajya Sabha.
However, the programme, that was launched with an aim to bring down the high oil import bill, has not been implemented in states of Chhattisgarh, Madhya Pradesh, Gujarat, Haryana, Himachal Pradesh, Orissa, Punjab, Rajasthan, West Bengal, Kerala and in Union Territories of Daman and Diu, Dadra and Nagar Haveli, Chandigarh and Pondichery due to various taxes and levies imposed by respective state governments on import of ethanol from other ethanol producing states.
Deora said the Government had last year directed oil companies to sell 5% of ethanol blended petrol throughout the country from 1 November 2006. The programme was, however, not implemented in Jammu and Kashmir, Andaman and Nicobar Islands and Lakshadweep due to logistic reasons.
To another question, he said state-run oil firms plan to invest Rs 38,900 crore in 2007-08, up from Rs 36,800 crore in the previous year.
Government provided a subsidy of Rs 2,549 crore on LPG and kerosene besides oil bonds worth Rs 24,121 crore to compensate oil PSUs for selling fuel below the cost, he said. During 2007-08, Rs 2,680 crore had been provided for LPG and kerosene subsidy.