Tag : BP

    Leading Oil PSUs come together to sign Tripartite-cum-Escrow Agreement for upcoming dedicated ethanol plants

    Sunil Aswal
    May11/ 2022

    Delhi (The Hawk): The Oil Marketing Companies (OMCs) - Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Limited (HPCL) have entered into a long-term purchase agreement (LTPA) for upcoming dedicated ethanol plants across India. The first set of Tripartite-cum-Escrow Agreement (TPA) was signed among OMCs, project proponents and Banks of the respective ethanol plant projects in presence of Shri Sandeep Poundrik (IAS), Principal Secretary, Department of Industries, Govt. of Bihar, Shri Ashwani Bhatia, MD State Bank of India and Shri Sukhmal Jain, Executive Director I/C, Marketing Corporate, BPCL. State Bank of India, Indian Overseas Bank and Indian Bank are three banks who are involved in this tripartite agreement with OMCs and project proponents. The agreement is designed to ensure that payment received by Ethanol plants is utilized for servicing the finance extended by these Banks. As per the agreement, ethanol produced by these dedicated ethanol plants shall be sold to OMCs for blending with Petrol as per Govt of India’s Ethanol Blended Petrol (EBP) Program. Payment towards supply of ethanol shall be credited to escrow account maintained with the financing bank to ensure servicing of loan as per schedule. TPAs were signed with Micromax Biofuels Pvt Ltd, Bihar, Eastern India Biofuels Pvt Ltd, Bihar, Muzaffarpur Biofuels Pvt Ltd, Bihar, K P Biofuels Pvt. Ltd, Madhya Pradesh and Visag Biofuels Private Limited, Madhya Pradesh. In Ethanol Supply Year 2021-22, India achieved 9.90% ethanol blending, consuming 186 Cr. Ltr of ethanol, saving over 9000 Crores of foreign exchange. However, the Government has advanced the target of achieving 20% blended ethanol by 2025, which is co ...

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