Oil cost put on hold plans to invest in Brazil

In view of the economic slowdown, India’s public sector oil marketing companies (OMCs) have put on hold their plans to invest in Brazil to set up ethanol projects, according to the Ministry of Petroleum’s Minister of State, Dinsh Patel, when asked whether OMCs are investing US$600 million in Brazil to set up an ethanol project with a manufacturing capacity of 500 million liters. While saying that the OMCs had explored the possibility of acquiring sugarcane acreage and putting up ethanol manufacturing units in Brazil, he said, “OMCs are not contemplating any investment in Brazil to set up an ethanol project at present.” (December 24, 2008)