The Supreme Court has passed an interim order allowing the procurement of an additional 149 crore litres of ethanol under Quarter IV of the Ethanol Supply Year (ESY) 2025–26 tender for the government’s Ethanol Blended Petrol Programme (EBPP). The order is significant for ethanol producers as it provides for additional procurement while the broader dispute over the allocation of ethanol supply remains under consideration.
The interim order was passed on Wednesday in a batch of matters led by Modi Biotech Private Limited and Others v. VINP Sugars and Distilleries Private Limited (SLP (Civil) No. 22963 of 2026). The petitions challenge a June 16, 2026 order of the Karnataka High Court, which had directed oil marketing companies (OMCs) to consider a representation from VINP Sugars and Distilleries Pvt. Ltd., a Long-Term Offtake Agreement (LTOA) holder, for procurement of ethanol up to its design capacity.
During the Supreme Court proceedings, Attorney General R. Venkataramani, appearing for Bharat Petroleum Corporation Ltd., Indian Oil Corporation Ltd. and Hindustan Petroleum Corporation Ltd., proposed an interim arrangement under which LTOA and non-LTOA ethanol suppliers would be treated equally for procurement purposes. The Supreme Court accepted the proposed arrangement and permitted the additional procurement of 149 crore litres under the Quarter IV tender.
The Court also observed that it found it difficult to understand the basis on which the Karnataka High Court had passed the order under challenge. The interim arrangement was supported by the petitioners led by Modi Biotech Pvt. Ltd., while several stakeholders opposed the relief, including VINP Sugars and Distilleries Pvt. Ltd., the Indian Sugar Mills & Bio Energy Manufacturers Association (ISMA) and certain non-LTOA ethanol units.
The case has attracted significant attention from ethanol producers because the dispute involves the treatment of LTOA and non-LTOA suppliers under the government’s ethanol procurement framework. The Supreme Court’s interim arrangement effectively provides a common procurement framework for the two categories while the legal dispute continues.
Senior Advocates Ranjit Kumar and Amit Sibal appeared for the lead petitioners. The petitioners were represented by Karanjawala & Co., led by Partners Debmalya Chandra Banerjee and Tahira Karanjawala, along with Associate Partner Arjun Sharma and Associates Ishaan Kumar and Pranav Garg.
Senior Advocate Mukul Rohatgi represented LTOA units established during 2023–24, while Senior Advocate Siddharth Dave appeared for VINP Sugars and Distilleries Pvt. Ltd. Senior Advocate Maninder Singh represented the Indian Sugar Mills & Bio Energy Manufacturers Association.
The Supreme Court’s interim order comes as India continues to expand ethanol blending in petrol under the EBPP. The programme is aimed at increasing the use of domestically produced ethanol, reducing dependence on imported crude oil, improving energy security and strengthening the country’s biofuel ecosystem. The additional procurement of 149 crore litres could provide further supply opportunities for ethanol manufacturers during ESY 2025–26.
