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NOC forms committee on ethanol issue

28 December 2007

NEPAL - The Nepal Oil Corporation (NOC) has formed a committee to look into the matter of mixing ethanol with petrol and it is holding its first meeting tomorrow.

The NOC has formed the committee after lawmakers rebuked the corporation for failing to mix ethanol with petrol a few days ago. The committee is supposed to present its findings within a month.

Meanwhile, the Sri Ram Sugar Mills (SRSM), owned by the Golcha organisation, has submitted a proposal to the Ministry of Industry, Commerce and Supplies (MoICS) to supply petroleum for this purpose. This proposal has been forwarded to the NOC by the MoICS. Also, there are other companies who are looking into this matter.

According to Rabin Chandra Adhikari, engineering manager at the NOC, and a member of the committee, the SRSM has proposed to provide 30,000 litres of ethanol to the NOC every day. This is about 10 per cent of the daily demand for petrol in the country. Adhikari also said mixing about 10 per cent ethanol with petrol in Nepal would be ideal.

Few years ago, the SRSM had approached the NOC with a proposal to produce ethanol, but the price of petrol at that time was cheaper than ethanol and mixing did not make any sense, said Eccha Bikram Thapa, spokesperson for the NOC. The NOC was also unable to make a decision on this regard because of frequent leadership changes within the corporation.

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Source: The Himalayan Times

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