Karnataka minister questions BJP’s silence on alleged ethanol scam

Bengaluru: Karnataka Minister Santosh Lad on Friday, November 14, accused the Centre of serious irregularities in the petrol-ethanol blending policy and questioned the BJP’s silence over the issue. He alleged that the ethanol blending programme had turned into a major scam and demanded answers on the quantity, pricing and beneficiaries of the policy.

Speaking to reporters in Bengaluru, Lad said the Centre’s guidelines had initially provided for blending five per cent ethanol with petrol, which was subsequently increased to 10 per cent, with 20 per cent prescribed as the maximum limit. He questioned reports of blending levels going up to 30 per cent and asked under which guidelines such a move was being implemented.

“If the permitted limit is 20 per cent, how can the blending level be increased to 30 per cent? Who has authorised this?” he asked, alleging that the increase amounted to 50 per cent above the prescribed limit.

Lad also questioned whether major corporate groups, including the Adani and Ambani groups, were benefiting from the policy. He sought details of the price at which oil companies were procuring ethanol and how much profit was being made by private companies and the Centre.

He said the Union government controlled several aspects of the sugar and ethanol industries, including licences for sugar factories and ethanol units, sugar pricing, minimum selling prices and import decisions. The Centre was also encouraging states and industries to increase ethanol production, he said.

Questioning the policy’s implementation, Lad said representatives of various industries, including the automobile components sector, had raised concerns about higher ethanol blending. He claimed that excessive blending could affect vehicle performance, damage engines and increase repair requirements.

He accused the BJP of avoiding a public discussion on the issue and demanded transparency on ethanol procurement, pricing and the alleged financial benefits accruing to companies.

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