The Indian government has turned to global ethanol producers as local producers failed to facilitate required quantities to be blended in petrol.

The move follows the federal government’s decision to blend 5% ethanol in petrol aimed at narrowing down country’s oil imports.

India on an average imports oil worth $150bn per annum.

Petroelum Minister M Veerappa Moily stated that domestic tenders could source just half of the 1 billion liters supply required for the new program.

"We are going for global tenders to procure ethanol," declared Moily adding that a gazette notification has been released to the oil marketing companies.

As per the government’s plan, the blended petrol will be made available from 30 June 2013.