The Supreme Court on Tuesday ordered status quo on ethanol allocation for the Ethanol Supply Year (ESY) 2025–26 while hearing a plea filed by Bharat Petroleum Corporation Limited (BPCL).
The Centre told the Court that India’s 20% ethanol blending programme is still an ongoing experiment and that its full impact will become clear only by next year.
Supreme Court orders status quo on ethanol allocation
A vacation bench of Justices M.M. Sundresh and Sheel Nagu issued notice on BPCL’s petition challenging a Karnataka High Court order that had directed Oil Marketing Companies (OMCs) to consider a distillery’s request for higher ethanol allocation before finalising the tender.
Appearing for the Centre, Attorney General R. Venkataramani said ethanol supply contracts for the 2025–26 supply year had already been finalised in October 2025.
Centre says changing allocations could disrupt blending programme
The AG said that reopening the allocation process for one supplier could trigger similar claims from others, leading to multiple court cases and affecting the national ethanol blending programme.
The Attorney General said the government is experimenting with 20% ethanol blending and expects to assess its full impact by next year.
He added that changing allocations at this stage could disrupt the supply chain and the Centre’s policy objectives.
Distillery challenged allocation in Karnataka High Court
Earlier on June 23, the Karnataka High Court passed its order on a petition filed by M/S Vinp Distilleries and Sugar Private Limited.
The company claimed it was allotted only 3.92 crore litres of ethanol despite having a production capacity of nearly 9.9 crore litres annually.
Existing allocation process to continue for now
After hearing both sides, the Supreme Court directed that the existing ethanol allocation process should continue unchanged until the next hearing.
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Khalid Lateef is a Sub-Editor at NewsX Digital, specializing in Indian politics and global affairs. He also covers viral trending stories and major crime developments.
