New Delhi: State-owned Engineers India Ltd (EIL) wants to utilize the line of credit India extends neighbours Bangladesh, Myanmar and Sri Lanka to land projects worth $1.7 billion (Rs8,041 crore).
“The talks are still going on and we are hoping for a conclusion very shortly. This will be for the first time that we will be working on the line of credit,” chairman and managing director Mukesh Rohatgi said.
A line of credit is an agreement by a lender that an entity may borrow up to an established limit at any time, without a formal loan submission.
In Bangladesh, EIL is eyeing orders for the $60 million Mobil Jamuna Fuels naphtha complex and the $70 million Asian Development Bank-funded compressor station project, besides contracts for feasibility studies, said a government official, who didn’t wish to be named because he is not authorized to speak to the media. In Myanmar, the engineering and related technical services provider is looking at orders from Myanmar Petrochemicial Enterprise for the revamp and upgradation of the 1.25 million tonnes per annum, or mtpa, Thanbayakan petrochemical complex ($17 million in project cost), the new 2.5mtpa Belin refinery ($1,500 million in project cost) and revamp and upgrade of a methanol plant ($50 million in project cost), the official said.
Lending technology: A CPC Corp. refinery in Taiwan. EIL is scouting for business in Myanmar and Bangladesh, among others. Maurice Tsai / Bloomberg
EIL is also targeting the Ceylon Petroleum Corp.’s Sapugaskanda oil refinery expansion and modernization project in Sri Lanka.
The company’s focus has turned towards countries that are sitting on vast reserves of oil and gas but unable to exploit them for want of technological services. Mynamar is a case in point where India has been trying to engage politically and economically to counter the growing Chinese presence.
“What EIL is doing is being done by foreign companies in India when they are working on bilaterally aided projects,” Harsh Srivastava, vice-president of infrastructure consultant Feedback Ventures, said. “These are tough countries to do business. If EIL executes these projects successfully, it provides them strong credentials to bid for subsequent projects in other countries.”
The major projects for which EIL has provided its services, and those which are under implementation include, 40 petroleum refinery projects, seven petrochemical complexes, 200 offshore platforms, 35 oil and gas processing projects, 25 mining and metallurgical plants and 37 crude oil, gas, petroleum products and pipelines projects.