TN PETRÓLEO

Indian energy companies plan to invest US$600mn in ethanol in Brazil, India`s Hindustan Times paper reported, citing official government plans.

Specifically, Indian companies plan to set up an ethanol project with a production capacity of 500Ml/y, the paper said, citing state-owned companies Bharat Petroleum, Hindustan Petroleum and Indian Oil as potential investors.

"The proposed investment will be made for a combination of acquisition and greenfield projects," the paper reported, citing plans submitted by the companies to the Asian country`s oil ministry.

Ethanol production in Brazil primarily will go to the Brazilian market with an export option, Hindustan Times said.

Bermuda-based Infinity and LDC Bioenergia are the main candidates for partnerships in the Indian venture, according to the paper.

"The initial US$600mn investment involves buying 15-35% equity stakes in one of the larger groups and 50% or more stakes in some of the running mills of the larger groups/or greenfield projects of smaller candidates," the paper said.