Maharashtra, by this month end, would become only the second state after Uttar Pradesh to sell ethanol doped petrol at all retail outlets, Petroleum Minister Ram Naik said on Monday.

"Petrol doped with 5 per cent ethanol would be sold at all petrol stations in Maharashtra by month end," Naik said at the 37th annual general meeting of All India Distillers' Association.

Uttar Pradesh on March 1 became the first state in the country to sell ethanol blended petrol, he said, adding that  Goa would be the third state to do so shortly.

"Oil companies floated tenders for supply of anhydrous ethanol to meet the requirements for January-March. There was a shortfall in all states except Maharashtra and UP and there was no response in Tamil Nadu, Gujarat, Punjab and Haryana," he said.

Because of the short-supply, the government has decided to cover the entire area of 9 states and 4 union territories with the supply of 5 per cent ethanol blended petrol by June 30, 2003. Earlier, it was to begin from January 1, 2003, he said.

"In order to encourage blending of ethanol with petrol, Government has granted 30 paise per litre concession in excise duty on ethanol doped petrol," Naik said.

In the first phase, ethanol blended petrol would be sold in all retail outlets in Andhra Pradesh, Gujarat, Haryana, Karnataka, Punjab and Tamil Nadu and four union territories of Chandigarh, Dadra & Nagar Haveli, Daman & Diu and Pondicherry with effect from June 30, 2003, he said, adding the annual requirement of ethanol for 5 per cent blending in these states and Union Territories was about 320-350 million litres.

The government has decided to extend the supply of 5 per cent ethanol blended petrol to the rest of the states and Union Territories in the country in the second phase which would increase the requirement of ethanol to over 650 million litres per year, Naik said.

"We also want to increase the ethanol content in petrol to 10 per cent in the third phase," he said, adding in the next phase ethanol would be blended with diesel based on the success of research and development studies.