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By:

Rajendra Joshi

3 December 2024 at 3:50:26 am

Surplus ethanol leaves the industry uneasy

THE ETHANOL CONUNDRUM - Part - 1 Entrepreneurs unhappy as expansion plans stall Kolhapur: An ambitious government programme that once drew enthusiastic participation from industry is now threatening to trip up the very sector it sought to promote. India’s ethanol manufacturing industry is grappling with a paradox: despite strong policy backing, assured pricing and generous financial incentives, producers are staring at excess capacity and inadequate procurement orders. The Centre’s push to...

Surplus ethanol leaves the industry uneasy

THE ETHANOL CONUNDRUM - Part - 1 Entrepreneurs unhappy as expansion plans stall Kolhapur: An ambitious government programme that once drew enthusiastic participation from industry is now threatening to trip up the very sector it sought to promote. India’s ethanol manufacturing industry is grappling with a paradox: despite strong policy backing, assured pricing and generous financial incentives, producers are staring at excess capacity and inadequate procurement orders. The Centre’s push to blend ethanol with petrol — initially pegged at 30 per cent — was accompanied by long-term financial support, low-interest loans and firm purchase guarantees. The policy certainty encouraged rapid capacity addition, with manufacturers investing heavily and ramping up production. However, supply has now far outstripped demand, leaving the industry anxious about how to absorb the surplus. Unless addressed urgently, industry insiders warn, the situation could echo the collapse witnessed during the UPA years under then Prime Minister Manmohan Singh, when policy uncertainty led to a near-decimation of the ethanol sector. The ethanol blending programme was conceived against the backdrop of rising foreign exchange outgo on fuel imports, increasing pollution from fossil fuels, and mounting surplus sugar stocks during crushing seasons. In 2018, the Centre unveiled the National Bio-Energy Policy, setting targets of 10 per cent ethanol blending by 2022 and 20 per cent by the end of 2025. Sugar Stability A robust floor price for ethanol brought stability to the sugar sector, with surplus sugar diverted towards ethanol production. The 10 per cent blending target was achieved well ahead of schedule. The government expanded the scope to include ethanol production from grains, bringing the food processing sector into the fold. To promote grain-based ethanol — from cereals, mixed grains and maize — the Centre rolled out long-term credit and interest subvention schemes. Before the scheme’s deadline in 2024, over 196 entrepreneurs came forward, leading to a rapid build-up of ethanol plants and a sharp rise in production. But procurement orders issued by oil marketing companies (OMCs) have now left many of these investors worried. At present, India’s installed ethanol production capacity stands at about 19.9 billion litres (1,990 crore litres). With several projects nearing completion, capacity is expected to touch 22 billion litres by the end of December. In contrast, achieving 20 per cent blending requires only about 13.5 billion litres of ethanol. Accordingly, OMCs have issued procurement orders for around 14.82 billion litres — barely 50 per cent of the available capacity. This effectively leaves half the ethanol produced without buyers. Some plants have received orders for just 30 per cent of their capacity, forcing producers to consider shutting operations for over 45 days, and in some cases up to three months.

Kolhapur Police corruption broker exposed

Khaki, Black Money - Part 1

Crores allegedly traded for transfers and promotions; seven bank accounts under scanner

AI Generated Image
AI Generated Image

Kolhapur: Kolhapur has stumbled upon a rare moment of truth — and possibly a historic reckoning — within the police force. An alleged broker in the police establishment, Satish Panekar, was caught red-handed by the Anti-Corruption Bureau (ACB) a few months ago for demanding hefty bribes in return for transfers and promotions. After spending time behind bars, Panekar is now out on bail. Departmental and ACB probes are formally underway, and he is expected to face trial.

 

Yet, the central question remains deliberately unanswered: who was Panekar working for? Who is the real architect of this racket — the invisible hand that turned postings and promotions into a marketplace?

 

If that “big fish” is netted, the shockwaves could rattle the upper echelons of Maharashtra’s police hierarchy. This is not merely about one middleman. It is about dismantling a system that has converted the uniform into a licence to mint black money. Whether this opportunity is seized or squandered will determine the future credibility of a police force already battered by corruption.

 

Big Scandal

The Panekar case has now become the most talked-about scandal within the Kolhapur police. He allegedly acted as a broker for transfers and promotions, with a woman police officer accused of identifying and funneling “clients” to him. Officers seeking favourable postings or career advancement were directed to Panekar, where the “rate card” was fixed. Once the payment was made, the desired transfer or promotion allegedly followed — as if by divine intervention.

 

What was earlier whispered in corridors is now openly discussed: the racket is believed to have handled transactions running into several crores of rupees. The Shiv Sena (Uddhav Thackeray faction) deputy leader Sanjay Pawar has formally alleged that Panekar parked this illegal wealth in multiple bank accounts held in his and his family members’ names. He has submitted details of seven such accounts to the district police chief, demanding a thorough probe.

 

The ACB, too, has reportedly sought permission from the Reserve Bank of India to access details of these accounts. If pursued honestly, the coming days could reveal the true scale of black money generated through police transfers and promotions — money extracted under the very authority meant to uphold the law. The biggest challenge, however, remains untouched: the arrest and exposure of the real mastermind.

 

Suspicion Widens

Investigators believe the money collected by Panekar runs into several crores. The locations of the bank accounts raise further suspicion. Unlike ordinary citizens, who typically open accounts close to home, these accounts are spread across branches of nationalised and private banks in areas such as Kasba Bawda, Radhanagari and Gandhinagar. A pressure-free investigation could expose how deeply the police force has sunk into this cesspool — and who has been shielding whom.

 

The needle of suspicion, meanwhile, points towards a senior police officer in the state. Since Panekar’s arrest, this officer is said to have visited Kolhapur on three occasions. There is talk that the officer even met Panekar while he was in custody at the Rajarampuri police station and stayed in the city for three days. Who is this officer? How much wealth was accumulated during his tenure in Kolhapur?

 

If Panekar begins to speak candidly before the inquiry committee, these answers may no longer remain buried. But for that to happen, the committee needs more than procedure — it needs protection. Protection that can come only from the Chief Minister himself.

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