Avonmore Capital to Benefit from Ethanol Policy Expansion
Avonmore Capital & Management Services Ltd (ACMS) has welcomed the Indian government's new ethanol policy, which includes exempting petrol blended with 22%-30% ethanol (E22-E30) from excise duty and launching E85 fuel. Through its Special Purpose Vehicle (SPV), Premier Green Innovations Private Limited (PGIPL), ACMS is strategically positioned to capitalize on the expected increase in ethanol consumption. PGIPL, with operational footprints in Himachal Pradesh and Odisha, is a significant ethanol producer. The policy aims to enhance energy security, reduce crude oil imports, lower emissions, and promote rural economic growth. ACMS holds an 8.88% equity stake in PGIPL, with its subsidiary Almondz Global Securities Limited holding an additional 40.99%.
Key Highlights
- Government policy to boost ethanol blending and E85 fuel adoption.
- ACMS's SPV, PGIPL, is strategically positioned to benefit.
- PGIPL has established ethanol production facilities in Himachal Pradesh and Odisha.
- Policy aims to increase energy security and reduce import dependence.
- ACMS and its subsidiary hold a significant stake in PGIPL.
Price Impact
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