The issue of increasing ethanol blend in petrol to 10%, from the current level of 5%, has once again fuelled protests from oil marketing Companies. While Bharat Petroleum Corporation (BPCL) says that ethanol quantity in domestic market would be insufficient, Indian Oil Corporation (IOC) is of the view that branded fuel shouldn't be supplied without ethanol blending. BPCL in its presentation to the petroleum ministry, said the estimated alcohol production in the country during 2006-07 was 2.3 million kl and estimated surplus quantity after setting aside for industrial & potable use was 0.823 million kl, which could be made available for ethanol blending programme. Industry's annual ethanol requirement is about 0.600 million kl for 5% ethanol blended petrol programme, which would be increased to 1.200 million kl for 10% ethanol blended petrol programme for the whole country except J&K, north eastern states and Andaman & Nicobar Islands. IOC has, however, made it clear that it would not be feasible to supply branded fuel without ethanol blending and normal fuel with 10% ethanol blending as most of the retail outlets in the country are not selling branded fuels. According to IOC, effect of 10% ethanol on various parts of dispensing units needs to be studied by the manufacturers of these units and necessary action needs to be taken for changing/ replacing the parts, if required, which is a time consuming process. IOC pleaded that further studies on effect of 10% ethanol blending (E10) in the petrol engines should be carried out before its introduction. According to BPCL, the 5% ethanol blending programme (EBP) supplies has commenced in 16 states, including which includes Delhi, Haryana, Himachal Pradesh, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand, Goa, Gujarat, Madhya Pradesh, Maharashtra, Andhra Pradesh, Karnataka & Tamil Nadu and four Union Territories Daman & Diu, Dadra & Nagar Haveli, Chandigarh & Pondicherry. EBP in Tamil Nadu and consequently in Pondicherry has been kept in abeyance as the spirit supply is yet to be restored. IOC has also made a similar argument that in some states including Tamil Nadu and Pondicherry the EBP has to be discontinued for want of sufficient ethanol supply. Besides, IOC brought to the ministry's notice that in Jharkhand, the EBP releases had commenced at Namkum however, state government had imposed import fee of Rs 1 per litre on import of ethanol which is making the procurement of ethanol commercially unviable as the procurement rates have already been finalised against tender.