The Supreme Court of India on Tuesday conducted a significant hearing regarding the ethanol tender case, where the Central Government provided a crucial clarification on the future of petrol composition in the country. During the proceedings, the government categorically stated that the decision to implement 20 percent ethanol blending in petrol remains firm and unchanged. This ambitious plan, which has been a cornerstone of the government's energy policy, was under scrutiny due to ongoing legal disputes regarding the supply and allocation of ethanol.
The Core of the Legal Dispute
The matter reached the apex court following a dispute involving Bharat Petroleum and the Central Government over ethanol tenders. The conflict intensified after the Karnataka High Court issued an order to reopen the ethanol allocation process for the 2025-26 period. Bharat Petroleum raised concerns that such an order could potentially disrupt the government's nationwide 20 percent ethanol blending scheme. The company argued that the stability of the allocation process is vital for the successful execution of this large-scale energy transition. The government maintains that this is a major national experiment, the actual results of which are expected to be visible by next year.
Arguments by the Attorney General
Representing the Central Government, Attorney General R, while venkataramani informed the court that the government is consistently working on the plan to mix 20 percent ethanol in petrol. He described the initiative as a significant national experiment and noted that the real-world outcomes are anticipated by next year. The Attorney General also highlighted a procedural challenge, stating that several cases related to this issue are currently pending in various High Courts across the country, while he expressed concern that if different High Courts deliver conflicting judgments, it could severely impact the national policy. Consequently, the Central Government expressed its intention to file a transfer petition to consolidate all related cases for a unified hearing.
Supreme Court Observations and Directions
After hearing the arguments presented by the Central Government, the Supreme Court issued a notice in the matter. The bench directed that the current status quo be maintained until the next date of hearing. During the session, the court also raised a procedural question, asking the government why it had not approached the Division Bench of the High Court before coming to the Supreme Court. On the other side, senior advocate Siddharth Dave, appearing for the petitioner, argued that the government's move to file a transfer petition was merely an attempt to delay the proceedings of the case.
Clarification on the Petrol Formula
Following the hearing, the Attorney General provided further clarification to ensure there was no misunderstanding regarding the petrol formula. He stated that his earlier comments were specifically related to the supply and allocation logistics of ethanol. He reaffirmed that there has been no change in the government's policy of blending 20 percent ethanol in petrol. However, he noted that the specific quantity of ethanol allocated to various oil companies would be determined based on factors such as demand, availability, and other prevailing circumstances. This ensures that while the 20 percent target remains the goal, the operational distribution remains flexible to meet market needs.