The Supreme Court on Tuesday ordered status quo with regard to the Karnataka High Court’s direction for enhancement of ethanol allocation for the Ethanol Supply Year (ESY) 2025-26.
“Issue notice… List on reopening (after summer vacation)… Till the next date of hearing, there shall be status quo,” a Bench of Justice MM Sundresh and Justice Sheel Nagu said.
It meant that the existing allocation process would remain undisturbed for the time being.
The interim order came on a petition filed by Bharat Petroleum Corporation Limited (BPCL) challenging the June 16 judgment of the Karnataka High Court.
The oil marketing company contended that the high court’s order would destabilise the national policy of 20 per cent ethanol blending for petrol.
On behalf of BPCL, Attorney General R Venkataramani contended that the high court’s direction to reconsider the representation of VINP Distilleries and Sugars Pvt Ltd seeking enhancement of its ethanol allocation could destabilise the Centre’s ethanol blending policy and disrupt the ongoing procurement process.
Venkataramani argued that ethanol supply contracts for ESY 2025-26 were finalised in October last year and supplies under the contracts were already underway.
Maintaining that the E20 fuel programme of blending 20 per cent ethanol with petrol and intended to strengthen India’s energy security, augment farmers’ income, and reduce carbon emissions was still evolving, he said it was a policy matter to be decided by the government.
No company could claim a legal entitlement to a higher ethanol quota and that judicial directions effectively altering the allocation methodology would amount to interference with the government’s policy on ethanol blending, he said, adding it’s an ongoing experiment and its impact would be clearer by next year.
In its June 16 order, the Karnataka High Court directed BPCL, the Indian Oil Corporation, and the Hindustan Petroleum Corporation to consider VINP Distilleries’ representation seeking enhancement of its ethanol allocation for ESY 2025-26 under the long-term off-take agreement executed with oil marketing companies.
