When Karan Mehta, founder of Aarav BioFuels Pvt. Ltd., commissioned his 90 KLPD grain-based ethanol plant in 2024, he expected his first supply contract with an OMC to be straightforward. His team had the capacity, feedstock availability, and a fully automated distillery. But when IOCL rejected his first tender, the reason surprised him:
Incomplete compliance documents and outdated tank calibrations.
Within two weeks, he learned what most new distillery owners discover the hard way:
Selling ethanol to IOCL, BPCL, or HPCL requires more than plant capacity—it demands absolute compliance, correct documentation, and a precise understanding of OMC procurement procedures.
If you’re in the same journey as Aarav BioFuels, this guide simplifies the complex world of OMC ethanol procurement.
India’s ethanol blending program has become one of the fastest growing sectors in the energy domain. The government’s push for cleaner fuels, stable pricing, and annual procurement through transparent tenders makes OMCs the most dependable buyers for distilleries.
Ethanol suppliers benefit from:
This combination makes OMC supply one of the safest and most profitable revenue streams for ethanol manufacturers.
OMCs float national-level tenders every Ethanol Supply Year (ESY), typically from November to October. These tenders specify depot-wise demand across India, supply conditions, QC norms, and transport requirements.
The procurement is decentralized but governed by the same rules. Each depot evaluates suppliers based on capability, distance, and compliance readiness.
OMCs purchase multiple categories:
Each feedstock influences the eligible price and preferred allocation.
Ethanol is flammable, sensitive, and used directly as transport fuel blend. Ensuring the safety, quality, and uninterrupted supply is non-negotiable.
This is why documentation, plant compliance, and transportation standards are heavily scrutinized.
Many ethanol plants assume that production capacity alone secures an OMC contract. In reality, OMC evaluation is more holistic—covering compliance, safety, infrastructure, and historical performance.
While even 30 KLPD plants qualify, larger plants (60–120 KLPD) tend to get higher depot allocations because they can handle larger logistics commitments.
Documentation is often the biggest reason behind tender rejections. OMCs verify every document meticulously to ensure safety and reliability.
| Category | Document Required |
|---|---|
| Company | PAN, GST, CIN, Certificate of Incorporation |
| Legal & Licensing | Distillery license, State Excise permissions, Bonded warehouse license |
| Safety | Fire NOC, PESO approval for storage tanks, Safety audit reports |
| Environment | CTE, CTO, Hazardous waste authorization |
| Storage & Plant | Storage tank drawings, calibration certificates, plant layout |
| Quality | QC test reports, ethanol analysis results, denaturant documentation |
| Transport | Approved tank truck list, transporter agreements |
| Financial | CA-certified net worth, solvency certificate (optional) |
| Performance | Past OMC supply records (if available) |
Most new plants fail due to missing or expired CTE/CTO, or mismatch between declared and actual storage capacity.
The process is structured but requires attention to detail. Following the sequence below significantly increases approval chances.
Each OMC maintains its own registration portal. You must upload company details, compliance documents, plant capacity data, and approvals.
Approval may take anywhere between 1–4 weeks depending on document completeness.
Depots closer to the plant reduce freight cost and help in timely deliveries. Before bidding:
Plants typically supply within 200–500 km radius, but high-capacity producers often supply farther across states.
OMCs release a nationwide tender with depot-wise requirements.
During bidding:
Your supply commitment must align with plant capacity and feedstock availability.
If selected, you will sign:
The agreement becomes active for the entire ESY.
Transportation plays a crucial role in timely supply and QC consistency.
Tank trucks must meet:
Transporters must have:
Each batch undergoes testing:
If QC fails, the tanker is rejected, and the supplier bears return costs.
OMCs provide reliable payment cycles. Once the depot accepts the ethanol:
This reliability is one of the biggest advantages of dealing with OMCs.
Ethanol pricing is controlled centrally and updated annually. This ensures all producers get fair, uniform prices regardless of bidder identity.
Choosing the right feedstock balance can significantly affect overall profitability.
Strategic planning helps optimize freight cost and timely dispatch.
Compliance is essential. OMCs prioritize plants with flawless documentation and strong safety systems.
Even a small deviation in safety equipment or expired permissions can lead to disqualification.
Many distilleries learn these lessons only after a rejection notice.
Plants must check all compliance conditions at least 30 days before tender season.
Ethanol supply to OMCs is profitable, but penalties can impact margin if systems are weak.
A dedicated compliance team or consultant reduces tender risk significantly.
A distillery in Punjab secured a BPCL contract but couldn’t supply for six weeks because its fire NOC renewal was delayed. This led to supply loss and lower allocation the next ESY.
A Telangana supplier faced repeated QC failures due to tanker contamination. After switching to dedicated ethanol-grade tankers, they achieved 100 percent acceptance.
A plant in Bihar increased storage from 1,200 KL to 2,800 KL. This helped them win contracts from multiple OMCs in the next ESY.
These are the patterns observed in plants that consistently perform well.
Selling ethanol to IOCL, BPCL, and HPCL is one of the most stable and scalable opportunities for distilleries. With predictable pricing, secure payments, and consistent demand, OMCs offer unmatched business reliability.
However, success requires:
Plants that invest early in compliance systems and tender readiness achieve higher allocations and long-term contracts.
For guidance on OMC registration, compliance, EPC approvals, and documentation:
📞 +91 78350 06182
📧 wecare@greenpermits.in
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You must register on the OMC vendor portals, participate in the annual ESY tender, meet safety and compliance requirements, and sign a supply agreement after selection.
Distillery license, excise permissions, fire NOC, PESO approvals, CTE/CTO, storage tank calibrations, QC test reports, company KYC, logistics documents, and financial certificates.
Yes, newly commissioned plants can bid if they have complete compliance certificates, operational readiness, and adequate storage & logistics arrangements.
Prices are fixed annually based on feedstock type (such as C-heavy, B-heavy, sugarcane juice, grain, or damaged grain ethanol) and remain uniform across India.
OMCs verify documents, plant capacity, safety compliance, storage infrastructure, QC readiness, and logistics capability before allocating depot-wise supply quantities.
