NEW DELHI: The Union government informed the Supreme Court on Tuesday that the 20% ethanol blending programme in petrol is still an “ongoing experiment” and the impact of the policy would be clearer by next year.
The SC was hearing a plea filed by BPCL challenging an order of the Karnataka High Court which directed OMCs to revisit the distribution and enhancement of ethanol allocation for 2025–26. In a relief to OMCs, the Supreme Court ordered a status quo with regard to the HC order.
A two-judge bench of justices MM Sundresh and Sheel Nagu issued notice to dedicated ethanol plants which had earlier procured a favourable order from the HC for enforcement of an agreement giving them rights to supply ethanol to OMCs. “Till the next date of hearing, status quo,” SC said.
Attorney General R Venkataramani, appearing for BPCL, told the bench that the order could destabilise the national policy for 20% ethanol blending.
The plea before the High Court was filed by VINP Distilleries and Sugars, a Dedicated Ethanol Plant (DEP), which was bound under a long-term offtake agreement to exclusively supply ethanol to BPCL, HPCL, and IOCL. In 2025, the OMCs allowed procurement from non-DEPs too, and fresh tenders left VINP with just 1.44 crore litres against its 9.26 crore-litre bid. VINP moved the High Court.
Litigation floodgates
The Centre said entire ethanol allocation was over in October, 2025. If one supplier’s quota was enhanced, others would claim parity, which would open litigation floodgates