Ethanol Stocks Rally After Government Scraps Duty On Higher Blends Till E30

Major ethanol linked stocks such as Balrampur Chini Mills, Triveni Engineering and Industries, Praj Industries rose after the opening bell on Thursday, June 11 as the government exempted excise duty on petrol blended with higher ethanol concentration.

The rally in these stocks was led by Balrampur Chini Mills that opened 2.83% higher at Rs 551.75 apiece followed by Praj Industries that advanced 1.98% to Rs 350.55, while Triveni Engineering gained 0.72% trading at Rs 375.95.

In a notification issued by Ministry of Finance's Department of Revenue on Thursday, the central government exempted petrol blended with a higher concentration of ethanol from the entire excise duty leviable on it.
The notifications set a nil rate of central excise duty, special additional excise duty, Road and Infrastructure Cess, and Agriculture Infrastructure and Development Cess on petrol blended with 22%, 25%, 27%, and 30% ethanol, respectively.

ALSO READ: Government Waives All Excise Duties On Higher Ethanol-Blended Petrol

Why These Companies Are In Focus?

Balrampur Chini Mills operates 10 sugar factories in Uttar Pradesh with a crushing capacity of 80,000 tonnes per day and a distillery capacity of 1,050 KLPD, with a significant portion devoted to ethanol supply to OMCs.

Triveni Engineering and Industries is typically regarded as the most operationally efficient ethanol producer, with 250,000 KL of capacity that is nearly fully contracted with OMCs.

Praj Industries supplies bio-refinery technology and ethanol plant engineering solutions, making it integral to industry capacity expansion.

Another smallcap stock to watch is CIAN Agro, another ethanol producer. Its stock has rallied over 4000% in five years amd more than 300% in past year.

ALSO READ: India Launches E85 Fuel As Ethanol Pivot Turns Stronger; Priced Rs 20 Lower Than E20

Highlights from the notification

No Excise Duty

The government has granted nil excise duty on all four new blends — E22, E25, E27, and E30. 

Four new fuel grades now have legal existence
E22, E25, E27, and E30 are now formally recognised under central excise law. Before this notification, these blends had no legal tax identity.

Ethanol in your petrol has already paid its taxes
The notification specifies that the ethanol component in each blend must have had GST — Central, State, UT, or Integrated tax as applicable — already paid on it. 
The nil duty benefit is on the blended product, not a back-door exemption on the raw inputs. No double benefit is being handed to producers.

BIS IS 19850 is the hard floor
Every single blend — E22, E25, E27, E30 — must conform to Bureau of Indian Standards specification IS 19850. This is the consumer protection embedded in the notification. 

Covers every excise head, not just the basic duty
The government has issued four separate notifications to cover every component of excise — basic central excise, Special Additional Excise Duty, Road and Infrastructure Cess, and Agriculture Infrastructure and Development Cess. All four are nil on all four blends.

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