E. PIPELINE TRANSPORTATION (Sugar-Attached Distilleries Only)

s) Pipeline Transport from Sugar Factory to Distillery:

• B-Heavy molasses transport MUST BE via dedicated pipeline (not tanker/manual transport).
• Single weighment system must be installed at both:
  • Sugar factory premises
  • Attached distillery premises
  • Prescribed Transport Pass (Parivaahan Pass) must be issued and signed by presiding officer.
  • Transport pass must accompany each pipeline transfer.

  t) Responsibility for Quality:

  • Sugar factory & distillery management bear full responsibility for preventing contamination during pipeline transport.

  x) Dual Pump & Valve System (for factories with B-Heavy AND C-Heavy production):

  • Separate pump for B-Heavy molasses transport.
  • Separate pump for C-Heavy molasses transport.
  • One valve per pump.
  • During B-Heavy transport: C-Heavy pump valve remains CLOSED.
  • During C-Heavy transport: B-Heavy pump valve remains CLOSED.
  • Identical valve system must be installed at distillery end.
  • Non-functional valves shall be sealed by Regional Inspector & Presiding Officer.
  • Only ONE type of molasses can be transported at any given time.

  y) Future BIS Flow Meter Compliance:

  • Government of India may mandate BIS-certified density flow meters for accurate measurement.
  • When such directive is issued, all sugar factories and distilleries MUST COMPLY.

  F. RECORD KEEPING & REPORTING

  e) Production, Sale & Stock Documentation:

  • Use existing prescribed forms (as per earlier notifications).
  • B-Heavy and C-Heavy molasses — production, sale, stock must be shown SEPARATELY.
  • Ethanol from each source must be shown separately.

  l) Daily Records:

  • Daily information and approved specimen records must be maintained for:
    • Molasses received/stored
    • Ethanol produced
    • Ethanol sold
    • Ethanol stock

    r) Segregated Record-Keeping:

    • All documents, records, and details regarding B-Heavy molasses ethanol production, storage, and sale must be maintained SEPARATELY from other distillery products/records.

    z) Certificates for Oil Companies:

    • When supplying ethanol to Oil Management Companies, distillery must issue:
      • Certificate of ethanol production (prescribed format)
      • Transport pass (prescribed format)
      • Other required certificates
      • Issued by presiding officer only.

      G. COMPLIANCE WITH CENTRAL GOVERNMENT GUIDELINES

      k) Implementation of Central Government Guidelines (18 December 2018): Distilleries MUST strictly follow Central Government letter dated 18 December 2018 covering:

      • Molasses storage procedures
      • Pipeline colour-marking system
      • Weighing procedures (independent flow meter installation)
      • Processing procedures
      • Ethanol storage procedures
      • Transportation procedures

      aa) Future Amendments: All conditions, terms, and specifications issued by Central/State Government in future are BINDING on all licensees.

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      4. ELIGIBILITY & LICENSE RESTRICTIONS

      A. STAND-ALONE DISTILLERIES (non-sugar factory-attached)

      n) B-Heavy Ethanol Permission for Stand-Alone Distilleries:

      • Stand-alone distilleries CAN be permitted to produce ethanol from B-Heavy molasses.

      u) Stand-Alone Distillery Restriction:

      • Stand-alone distilleries producing B-Heavy molasses ethanol CANNOT produce ethanol from any other feedstock.
      • Restriction: Molasses-only (B-Heavy) as feedstock.

      B. SUGAR-ATTACHED DISTILLERIES

      n) Sugar Factory-Attached Distilleries:

      • Sugar factory-attached distilleries CAN produce ethanol from B-Heavy molasses.

      w) Bond Requirement for B-Heavy-Only Production:

      • If sugar-factory-attached distillery intends to produce ONLY from B-Heavy molasses:
        • Must file Bond with Commissioner of State Excise.
        • Bond declares: All tanks and equipment at distillery shall be used ONLY for:
          • B-Heavy molasses storage
          • Ethanol production from B-Heavy molasses
          • No other use permitted.

          C. GENERAL ELIGIBILITY

          o) License Requirement:

          • B-Heavy ethanol production permission granted ONLY to distilleries holding valid Excise License under:
            • Bombay Prohibition Act 1949
            • Rules under BPA 1949

            D. FUTURE C-HEAVY SOURCING FROM B-HEAVY

            v) C-Heavy Supplement from B-Heavy:

            • C-Heavy molasses typically used for IMFL/CL production.
            • If C-Heavy availability drops in future:
              • B-Heavy molasses may be used to supplement C-Heavy requirement.
              • Policy allows flexibility based on availability.

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              5. GOVERNMENT APPROVAL PROCESS FOR COMMENCEMENT

              4. Mandatory Pre-Commencement Approval:

              Step 1: Licensee submits written intimation to Presiding Officer / Superintendent, State Excise Dept.

              Step 2: District Superintendent immediately forwards approval request to:

              • Commissioner of State Excise

              Step 3: Commissioner of State Excise submits proposal to Government.

              Step 4: Government approves within 15 days of proposal.

              Step 5: Only AFTER Government written approval, licensee may commence ethanol production from:

              • Sugarcane juice, OR
              • B-Heavy molasses, OR
              • C-Heavy molasses

              Non-Compliance Consequence: Production commenced without approval = VIOLATION (no explicit penalty stated, but implies license action).

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              6. CERTIFICATION AUTHORITY

              p) B-Heavy Ethanol Production Certificate:

              • Certificate issued by: Presiding Officer / Superintendent, State Excise Department
              • Certificate required for: Ethanol produced from B-Heavy molasses.

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              7. APPLICABLE ACTS & RULES

              The policy operates under:

              1. Bombay Prohibition Act 1949 (BPA)
              2. Rules under BPA 1949
              3. Government Notification No. BPA 1091/Pr.Kr.5/RAUSHU-2, dated 8 September 2015 (for molasses classification & recovery factors)
              4. Government of India, Ministry of Consumer Affairs, Food & Public Distribution:
                 • Letter dated 16 July 2018
                 • Letter dated 17 July 2018
                 • Circular No. 40/1/2018-(BP&E), dated 18 September 2018
                 • Letter dated 18 December 2018

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                 WHO IS AFFECTED

                 1. Sugar Factories in Maharashtra (producing B-Heavy molasses or ethanol from sugarcane juice)
                 2. Distilleries attached to sugar factories (all categories)
                 3. Stand-alone distilleries (holding valid Excise License under BPA 1949) — for B-Heavy molasses ethanol only
                 4. District Excise Officers (approval authority)
                 5. State Excise Superintendent (notification recipient)
                 6. Commissioner of State Excise (approving authority)
                 7. Sugar Commissioner (for priority declaration)
                 8. Oil Management Companies (end consumers of ethanol)

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                 IMPORTANT NOTES / CONDITIONS / PENALTIES

                 A. CRITICAL MANDATORY CONDITIONS

                 1. NO MIXING OF FEEDSTOCKS:

                    • Distillery operating on B-Heavy CANNOT simultaneously produce from C-Heavy or sugarcane juice.
                    • Switch between feedstocks requires 10-day notice and written approval.
                    • Equipment must be thoroughly cleaned between feedstock changes.

                    • SEPARATE STORAGE IMPERATIVE:

                      • B-Heavy and C-Heavy molasses in separate steel tanks.
                      • Ethanol from different sources in separate tanks.
                      • All tanks must be gauged and sealed before use.

                      • GOVERNMENT APPROVAL MANDATORY:

                        • Ethanol production cannot commence without written Government approval.
                        • 15-day approval window from Commissioner's proposal.
                        • Any unauthorized production = breach of license.

                        • RECOVERY SHORTFALL REPORTING:

                          • Falling below minimum recovery triggers mandatory written explanation.

                          • 2% shortfall requires Government approval and justification.

                            B. OPERATIONAL EXCEPTIONS / FLEXIBILITY

                            1. Sugarcane Juice Allowed: Direct ethanol production from fresh sugarcane juice (not just molasses).
                            2. Stand-Alone Distilleries: Can participate (B-Heavy only restriction).
                            3. C-Heavy from B-Heavy: Future flexibility if C-Heavy becomes scarce.
                            4. Sugar Priority: Sugar production takes priority if shortage declared.

                            C. PENALTIES / ENFORCEMENT (Not explicitly stated)

                            • License suspension/cancellation for violations (implied under BPA 1949).
                            • Seizure of unauthorized ethanol (under BPA 1949).
                            • Penalties under Prohibition Act for unauthorized production (standard).

                            D. APPEALS / GRIEVANCE REDRESSAL (Not mentioned)

                            • No appeal process specified in this GR.
                            • Presumably follows standard Excise Department appeal mechanism.

                            E. COMPLIANCE CERTIFICATION

                            • This GR is available on www.maharashtra.gov.in
                            • Web Reference ID: 201901161724311229
                            • Digitally signed document.

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                            SPECIAL NOTES FOR EXCISE PRACTITIONERS

                            1. THREE RAW MATERIALS ARE DISTINCT:

                               • B-Heavy molasses (BH-1 @ ≥60% TRS; BH-2 @ 55-59.99% TRS)
                               • C-Heavy molasses (Grade A @ ≥50% TRS; Grade B @ 44-49.9% TRS; Grade C @ 40-43.9% TRS)
                               • Sugarcane juice (fresh, not molasses)
                               • Recovery yields differ substantially.

                               • TANK SEGREGATION IS NON-NEGOTIABLE:

                                 • This is not discretionary — "MUST" in original.
                                 • All tanks must be steel; gauging/sealing required.
                                 • Violation = license action.

                                 • CENTRAL GOVERNMENT GUIDELINES (18 December 2018) MUST BE FOLLOWED:

                                   • Storage, pipeline, weighing, processing, transport — detailed in Central letter.
                                   • This GR incorporates Central Government directives by reference.
                                   • Non-compliance = breach of State policy.

                                   • STAND-ALONE vs. ATTACHED DISTILLERIES:

                                     • Stand-alone: B-Heavy ONLY (no other feedstock).
                                     • Attached: Can use B-Heavy, C-Heavy, and sugarcane juice (per conditions).
                                     • Different regulatory paths.

                                     • APPROVAL TIMELINE:

                                       • 10 days' notice to District Officer.
                                       • District officer forwards immediately to Commissioner.
                                       • Commissioner submits to Government within 15 days.
                                       • Government decision within 15 days of Commissioner's proposal.
                                       • Total: Up to 40 days from initial notice (approximate).

                                       • B-HEAVY ETHANOL SUPPLY TO OIL COMPANIES:

                                         • Certificates required from Presiding Officer.
                                         • Transport pass required.
                                         • Records must show source clearly.
                                         • Subject to all petroleum/oil sector regulations (outside scope of this GR).

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                                         DOCUMENT LOCATION & AUTHENTICATION

                                         • Government Portal ID: 1451
                                         • Maharashtra Government Website: www.maharashtra.gov.in
                                         • Web Reference ID: 201901161724311229
                                         • Digital Signature: Applied (verified on state portal)
                                         • Language: Marathi (officially translated herein)
                                         • Issued Under: Authority of Governor of Maharashtra
                                         • Distributed to: Chief Minister's Office, Opposition Leader, Minister for Excise, Chief Secretary, Additional Chief Secretary (Home), Commissioner of State Excise, Sugar Commissioner, all Divisional Deputy Commissioners, all District Superintendents, State Excise Headquarters.

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                                         END OF ANALYSIS