Bihar CM writes to Pawar on ethanol

  • 26/07/2009

  • Asian Age (New Delhi)

MUKESH RANJAN Nitish feels that though ethanol units might not be viable in Maharashtra, in Bihar there is a `business case' for setting up such units Bihar chief Minister Nitish Kumar has shot off a letter to Union agriculture minister Sharad Pawar disapproving his contention that "exclusively ethanol producing units" would not be economically viable. The chief minister in his letter, a copy of which is with this newspaper, has argued that though such units might not be viable in Maharashtra, in Bihar there is a "business case" for setting up such units as they have assured export market. t Recently, in Lok Sabha Mr Pawar had rejected a plea made JD(U) leader Rajeev Ranjan Singh, alias Lalan Singh, that the Centre should consider the Bihar f government's proposal to t set up units for exclusive production of ethanol. l The agriculture minister had argued that his experience in Maharashtra suggested that such move would not be "economically viable". f Arguing that the experience of Maharashtra in ethanol production may not have much relevance to his state, the chief minister said, "The production of ethanol is not targeted to meet the domestic supply, but to meet the export commitments and also the fact that the investors have already tied-up the entire proposed production of ethanol for export, the plea of the state government will have to be looked at with a far more sympathetic attitude." On the issue of exclusively ethanol production units not likely to come up in Bihar and the entrepreneurs would not be willing to set up units, the chief minister said he would "correct facts" for the agriculture minister to consider the case. "Even though 25 proposals have been approved for setting up sugar mills, only four have initiated action. The main reason for the others not immediately showing interest is the fall in the sugar price." The State Investment Promotion Board had also approved 13 mega projects for production of ethanol.