Oil PSUs sign tripartite-cum-escrow #agreement for upcoming #dedicated ethanol #plants
Oil PSUs sign tripartite-cum-escrow #agreement for upcoming #dedicated ethanol #plantsThe Oil Marketing Companies (OMCs) – Bharat Petroleum Corporation (BPCL), Indian Oil Corporation (IOCL) and Hindustan Petroleum Corporation (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 inked among OMCs, project proponents and banks of the respective ethanol plant projects.

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 utilised 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.

TPAs were signed with Micromax Biofuels, Bihar; Eastern India Biofuels, Bihar; Muzaffarpur Biofuels, Bihar; K P Biofuels, Madhya Pradesh and Visag Biofuels, Madhya Pradesh.

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