'Rang De Basanti', the tragio-comic saga of a group of friends trying to purge society of corruption, lost out in the race for Best Foreign Film at the Oscars shortlist, while acclaimed director Deepa Mehta's 'Water' kept Indian hopes alive, albeit as a Canadian entry.

India's official entry to the Oscars 'Rang De Basanti' was voted out of the Best Foreign Film in the shortlist ahead of nominations for the category to be finalised by January 23.

Directed by Rakyesh Omprakash Mehra, the critically acclaimed and commercially successful film has memorable performances by Aamir Khan, Atul Kulkarni and Soha Ali Khan among others.

However, Indians still have something to cheer about as Canada's official entry 'Water', directed by India-born Deepa Mehta and starring Bollywood heartthrob John Abraham and model Lisa Ray, has made it to the shortlist of nine films for next month's 79th edition of the prestigious awards. The list was announced in Los Angeles yesterday.

The films shortlisted by the Academy of Motion Picture Arts and Sciences include Pedro Almodovar's 'Volver' (Spain), Mexico's entry 'Pan's Labyrinth', a fantasy from Guillermo Del Toro and Germany's 'The Lives of Others.' Among the shortlisted movies, five would be nominated for the prestigous award on January 23.

But a surprise omission was China's 'Curse of the Golden Flower,' Zhang Yimou's epic which had been tipped to vie for the top prize at the Oscars, which take place in Hollywood on February 25.

An Indian film is yet to win the top prize in the foreign film category, though a few movies have made it to the last five. Aamir-Khan starrer 'Laagan' had made it to the final five in foreign film cateogry in 2002, when a Bosnian movie had eventually won the coveted prize.

--- PTI