Indian sugar mills look at tripartite financing to boost ethanol production

In India, the Hindu Business Line newspaper reports that sugar mills are looking to create a tripartite financing mechanism with banks and oil marketing companies in an effort to boost ethanol production and divert sugarcane from sugar production. Although policy supports increased ethanol consumption and OMCs often struggle to get the required amount of ethanol to achieve the national 10% blend, sugar mills are struggling so much financially they cannot qualify even for soft, government-backed loans. A tripartite deal would have the purchases of ethanol by OMCs be paid directly back to the banks as a sort of collateral to help reduce bank risk and increase the number of mills who can secure financing for ethanol investments.