Indian mills look for ethanol financing workarounds with banks

In India, in an effort to get around the financing challenges sugar mills have had to secure financing due to poor balance sheets, Cogencis news agency reports that mills are asking banks to look at ethanol investments as separate to the mills themselves in an effort to unblock finance. The option to have tripartite financing agreements between mills, oil marketing companies and banks has also been mooted. For the model to work, OMCs have to guarantee offtake from mills and funds will go into an escrow account that will then be shifted to the banks to pay off the loans.