Indian mills, OMCs and banks agree to ethanol escrow accounts

In India, News18 reports that in an effort to boost the ethanol investment capacity of debt-stricken sugar mills, escrow accounts will be set up so that oil marketing companies pay banks directly without passing through mills so mills can secure financing for additional ethanol production. The government has been offering soft financing for mills to increase production capacity but their weak financial state has kept banks from wanting to take on the risk. The idea of the escrow accounts is hoped to break that financing deadlock and move production projects forward.