GR Regarding approval for production of ethanol from sugar/sugar syrup/sugarcane juice/B-heavy/C-heavy and its storage in distillery tanks and its sale after certification.

Amended Rule/Section: Government Resolution dated 14.10.2020 (Reference: StateExc 0920/Pr.Kr.163/RaUshu-2), Serial No. 6, Condition No. 19

Type of Change: Substitution/Amendment

What Changed: The original GR dated 14.10.2020 contained Condition 19 which restricted stand-alone distilleries producing ethanol from B-heavy molasses to ONLY use molasses as feedstock — they were prohibited from using any other raw materials (like sugarcane juice/syrup) for ethanol production. This created an asymmetry with integrated sugar mill-distillery units that could use direct cane juice. The new amendment (dated 31.01.2023) removes this restrictive condition entirely and replaces it with a more permissive framework aligned with revised Government of India orders (dated 31.05.2021 and 13.01.2022 under the Sugarcane Control Amendment Orders).

The NEW Condition 19 now permits:

• Integrated units (distilleries with own sugar mills): Full permission to produce ethanol directly from sugarcane juice.
• Stand-alone distilleries (without own sugar mills): Permission to produce ethanol from sugarcane juice/syrup purchased from sugar mills, specifically for supply to oil companies under the Ethanol Blending Programme (EBP).
• Explicit prohibition: Stand-alone distilleries CANNOT purchase cane juice/syrup from khandsari units, as khandsari does not fall under the Sugarcane (Control) Order, 1966.

Key Details:

• Previous policy: Stand-alone distilleries producing B-heavy ethanol could ONLY use molasses, no other feedstock allowed
• New policy: Stand-alone distilleries can now use purchased cane juice/syrup from registered sugar mills (not khandsari) for EBP ethanol
• Rationale: Aligns Maharashtra policy with GoI's liberalized ethanol production guidelines (S.O. 2071(E) dated 31.05.2021 and subsequent clarifications dated 13.01.2022)
• Feedstocks covered: Sugar, sugar syrup, sugarcane juice, B-heavy molasses, C-heavy molasses
• End-use restriction: For stand-alone units, cane juice-based ethanol must be supplied to oil companies under EBP only

Effective Date: From date of publication (31 January 2023)

Authority: Government of Maharashtra, Home Department (Excise), under powers granted by the Bombay Prohibition Act and aligned with GoI's Sugarcane (Control) Order amendments and Ethanol Blending Programme guidelines.

Digital Signature Code: 202301311755529629