Mumbai, July 30: Just when the sugar manufacturers were hoping to rake in big bucks by selling ethanol for an alternative fuel programme that would blend 5 per cent of the stuff with petrol, the chemical industry has started to lobby hard to scupper the whole plan.

The chemical units want the government to abandon the proposal for a mandatory blending of 5 per cent ethanol with the other fuel to produce a cheaper energy alternative.

The chemical producers are challenging the very rationale of the ethanol-blending programme. They contend that instead of ensuring energy security for the country, there will be only negligible saving from the blended fuel programme.

The Centre plans to start 5 per cent blending of ethanol with petrol in nine states and four union territories in the country. They include Uttar Pradesh, Punjab, Haryana, Maharashtra, Gujarat, Kerala, Andhra Pradesh, Karnataka and Tamil Nadu and the four union territories ? Goa, Pondicherry, Chandigarh and Delhi.

The opposition to ethanol blending has been spearheaded by the Indian Chemicals Manufacturers Association (ICMA), now known as Indian Chemical Council.

However, the domestic sugar industry continues to remain optimistic that the government will go ahead with the programme, which is expected to be kickstarted this October.

The chemical manufacturers have expressed strong reservations about the ethanol-blending programme and said it will lead to a shortage of alcohol.

“Even without the ethanol blending programme, there is not enough alcohol to cater to the potable liquor and chemical industries. During the last two years, 70 crore litres of alcohol was imported in the country from Brazil to meet the shortfall,” the ICI has said.