Fresh funding for Jamnagar zone

Fresh funding for Jamnagar zone
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First Published: Sun, Feb 25 2007. 11 58 PM IST
Updated: Sun, Feb 25 2007. 11 58 PM IST
Mumbai: Reliance Industries Limited, which has just announced a Rs13,500 crore cracker unit and petrochemical complex at its special economic zone at Jamnagar, Gujarat, is likely to raise the required funds through a fresh round of funding comprising of debt, equity, or a combination of the two.
RIL officials who requested anonymity said the company will work out funding plans for the new 2 million tonne per annum cracker project separately; it has already raised $5.5 billion through foreign debt, and equity from promoters.
”The design of the new project will be worked out in a few months and the funding model will be decided accordingly,” an official said.
The company had last week announced a preferential issue of 120 million warrants to the promoters and External Commercial Borrowings (loans raised overseas) to the tune of $2 billion to fund some of its existing or already announced projects in areas such as oil and natural gas exploration, distribution infrastructure, and organised retail.
A company spokesperson said that it would work out the details of the proposed $2 billion ECB issue in consultation with financial experts in a month. Reliance Industry’s petroleum arm Reliance Petroleum Ltd is currently in the process of setting up a a new refinery in Jamnagar where the proposed petrochemical complex is to be situated. The cost of this refinery is estimated in the region of Rs27,000 crore
US energy major Chevron Corporation has a 5% stake in the new refinery with a provision for increasing the same up to 29%.
yassir.p@livemint.com
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First Published: Sun, Feb 25 2007. 11 58 PM IST
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