Ethanol factory permissions cleared through TS-iPASS in 2023 under BRS regime: officials

HYDERABAD

The controversy over the ethanol factory at Dilawarpur in Nirmal district took a political hue when it was revealed that the permissions for the company were issued through the TS-iPASS before the Congress government took over (December 7, 2023).

Sources said that while the Central government gave its nod to only fuel ethanol, the BRS government gave permission to all products such as ethanol, extra-neutral alcohol, industrial spirits and absolute alcohol, which, the sources said, were done deliberately and in violation of norms.

The Letter of Intent (LoI) was issued by the BRS government on October 22, 2022, for the manufacture of 600 lakh litres of ethanol, extra-neutral alcohol, industrial spirits and absolute alcohol. Sources added that the orders were issued without the approval of the Cabinet, which ratified the decision only in December 2022.

The PMK Distillations Private Ltd had to take the mandatory environmental clearance for ethanol manufacture. Though company’s LoI was for manufacturing ethanol, extra neutral alcohol, industrial spirits and absolute alcohol, it applied to the Central government only for ‘Fuel Ethanol’. The company submitted a self-certification that the entire 300 KLPD capacity proposed was for the manufacture of ‘Fuel Ethanol’.

The Centre gave permission only for production of ‘Fuel Ethanol’ on February 24, 2023, but the then government did not limit it to that, in the LoI given to PMK Distillations on April 1 that year. Later, a fresh LoI was issued that included all other products.

The Environment Ministry had given permission only for production of ethanol (fuel), but the company did not limit itself to that and applied for a license to manufacture ethanol, extra neutral alcohol, industrial spirits and absolute alcohol products on June 7, 2023, citing a new LoI.

Based on the LoI given by the government, the Irrigation Department Chief Engineer’s wing of Adilabad permitted water allocation on June 15, 2023.

Officials alleged that environmental provisions were also violated. A No Objection Certificate (NOC) from local bodies (Gram Panchayat or Municipality) was mandatory, but the company constructed a compound wall without obtaining local permission.

Based on the self-certification submitted, the company ensured it fell under the B2 category, thus getting an exemption from public consultation, the sources added.

Published - November 28, 2024 08:50 pm IST