OMCs put on hold investment plans in Brazil

New Delhi: In view of the economic slow down and resource crunch, the public sector oil marketing companies (OMCs) have put on hold their plans to invest in Brazil to set up ethanol projects.

This was stated in the Rajya Sabha by the Minister of State for Petroleum and Natural Gas, Mr Dinsha Patel, in a written reply to a question on whether OMCs are investing $600 million in Brazil to set up an ethanol project with a manufacturing capacity of 500 million litres.

While saying that the OMCs had explored the possibility, he said,“however, in view of the economic slowdown and resource crunch, OMCs are not contemplating any investment in Brazil to set up an ethanol project at present,” he said.

“OMCs have explored the possibilities of acquiring sugarcane acreage and putting up ethanol manufacturing units in Brazil. Feasibility study for ethanol operations in Brazil was conducted. The project was found feasible and strategic for the Indian oil industry,” he informed.