Patna, Apr 7(UNI) Minister of State for Sugarcane Nitish Mishra today said the Centre had clarified that there was no restriction on production of ethanol in existing sugar mills in Bihar.

Talking to newpersons, Mr Mishra said here that Union Agriculture Minister Sharad Pawar had written a letter informing the Bihar government that there was no restriction on production of ethanol in the existing sugar mills.

'' Ethanol could also be produced in the closed sugar mills once it becomes operational,'' he said adding that the Centre's directive on ban of ethanol did not apply on existing and closed sugar units.

Mr Mishra, however, clarified that proposals for installation of sugarcane crushing units for production of only ethanol, would not be entertained as the Centre had imposed a ban on it.

'' According to the Centre's directive, the existing sugar mills could switch over to production of Ethanol if the price of Sugar in domestic market slips below than Rs 13 Per Kg'', he informed.

He said the state government had also decided to install tubewells in the sugarcane cultivation areas on priority basis to augment production.

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