IndianOil plans to buy sugar mill, set up ethanol unit in Brazil
New Delhi   16-Dec-2008
Public sector oil marketing company, IndianOil, is planning to buy a sugar mill and set up a refinery in Brazil to produce ethanol, the government said on Monday. "Indian oil firms view investments in Brazil for ethanol production as highly strategic," deputy agriculture minister, Akhilesh Prasad Singh, told Parliament in a written reply to a question. Bharat Petroleum Corporation Ltd (BPCL) is also working with Brazil's Petroleo Brasileiro SA for investments in the country to produce ethanol, the minister said. India's ethanol production was estimated at 2,730 million litres in the year to September 2008, down from 2,900 litres a year ago, Prasad said. India, which imports 70% of the oil it consumes, and heavily discounts fuel sales, asked oil firms to mix ethanol with petrol to 10% from October, when the new sugarcane-crushing season began. Before October, oil firms mixed 5% ethanol, an alternative fuel made from cane or corn with petrol.