WHO IS AFFECTED

• All licensed ethanol producers in Maharashtra (holding permits/licenses for alcohol production from sugar/molasses)
• License categories affected: Distillery licenses for ethanol production from molasses (including B-heavy and C-heavy molasses units)
• Specifically: Entities currently producing anhydrous ethanol from B-heavy molasses
• New applicants: Any existing licensee wishing to add RS/ENA production capacity

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IMPORTANT NOTES / CONDITIONS / PENALTIES

Mandatory Conditions for RS/ENA Production

1. Oil Company Contract is Prerequisite:

   • No license shall be granted or amended to permit RS/ENA production unless the applicant has executed a supply contract with an Oil Marketing Company (as per Central Government policy)
   • Evidence of such contract must be submitted at the time of application

   • No State Guarantee of Market Off-take:

     • The State Government does NOT guarantee purchase of any quantity produced
     • The State Government does NOT assume any liability if the license holder fails to supply contracted volumes

     • License Holder Indemnification:

       • The license holder accepts full responsibility and liability for:
         • Fulfillment of all contractual supply obligations
         • Any breach or delay in supply
         • All claims, damages, or disputes arising from non-performance of supply contracts
         • This is explicitly stated in the Resolution to absolve the State of all liability

         • Production Beyond Anhydrous Ethanol:

           • Currently, under the existing policy framework (Ref. GR dated 14.10.2020), production is restricted to anhydrous ethanol only from B-heavy/C-heavy molasses
           • This Resolution grants freedom to produce RS and ENA in addition, but only if an oil company contract exists
           • Any license holder desiring to produce RS/ENA must make a fresh application with oil company contract evidence

           No Blanket Permission

           • This is NOT a blanket authorization to all license holders
           • Each applicant must independently establish the oil company contract
           • The State will not entertain requests for RS/ENA production without documented oil company supply agreements

           COVID-19 Lockdown Context

           • The Resolution acknowledges that anhydrous ethanol lifting from B-heavy distilleries was blocked due to COVID-19 lockdown restrictions
           • This policy addresses the liquidity/market issue for B-heavy producers by permitting diversification into RS and ENA (which have different market demand profiles)
           • However, this is conditional on pre-existing oil company supply contracts

           Appeals & Further Queries

           • Not explicitly mentioned in this Resolution
           • Standard appellate procedures under the Bombay Prohibition Act, 1949 and Maharashtra Excise Rules would apply
           • Queries on implementation to be addressed to: Commissioner of State Excise (आयुक्त, राज्य उत्पादन शुल्क), Mumbai-23, or relevant Divisional Deputy Commissioner of State Excise

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           DISTRIBUTION & IMPLEMENTATION

           This Resolution was issued to:

           1. Chief Secretary, Principal Secretary to Chief Minister
           2. Opposition Leader, Legislative Council/Assembly
           3. Secretary to Deputy Chief Minister
           4. Private Secretary to State Minister of Excise
           5. Chief Secretary, State of Maharashtra
           6. Principal Secretary (Excise), Home Department
           7. Commissioner of State Excise — Primary implementing authority
           8. Sugar Commissioner, Maharashtra State, Pune
           9. Divisional Deputy Commissioners of State Excise (all divisions)
           10. Superintendents of State Excise (all divisions)
           11. RAOSHU-2 — for records

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           CRITICAL LEGAL INTERPRETATION

           Restrictive Nature of This GR

           Despite the title suggesting "permission" (परिवर्तनीबाबत = regarding alteration/modification), this is not a blanket authorization. It is a conditional policy statement that:

           1. Reiterates the existing restriction (ethanol only from B-heavy molasses)
           2. Creates a narrow exception (RS/ENA permitted) IF AND ONLY IF oil company supply contract exists
           3. Explicitly disclaims State liability — emphasizing that this is a high-risk activity and the State will not stand behind supply obligations

           Legal Effect

           • Existing policy framework (GR dated 14.10.2020) remains in force
           • This GR modifies that policy only for applicants with oil company contracts
           • License holders without such contracts cannot apply for RS/ENA production
           • The State has structured this to avoid becoming a party to commercial supply arrangements

           Enforcement Authority

           • Commissioner of State Excise and Divisional Deputy Commissioners will process applications
           • Approval is conditional on submission of oil company supply contract evidence
           • Standard license conditions (quality, storage, tax payment, audit) continue to apply

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           DOCUMENT AUTHENTICITY

           • Digitally signed by Deputy Secretary U. B. Ajetraon
           • Website availability: Available on www.maharashtra.gov.in
           • Portal reference: 202105211519014429
           • Issued under: Orders of the Governor of Maharashtra, Home Department

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           CONCLUDING NOTES

           This Resolution is a policy clarification and conditional authorization, not a general license grant. License holders should:

           1. First establish an oil company supply contract (with Oil Marketing Companies like IOCL, HPCL, BPCL, etc.)
           2. Then apply to the Commissioner of State Excise (or Divisional Deputy Commissioner) for license modification to include RS/ENA production
           3. Submit evidence of the oil company contract with the application
           4. Accept all contractual risks — the State is explicitly NOT responsible for market demand or supply obligations

           The policy addresses the COVID-19 lockdown impact on B-heavy ethanol production by offering diversification into RS/ENA, but only to those with pre-existing commercial arrangements with oil companies.