HPCL's Barmer refinery achieves financial closure1 min read . Updated: 28 Jan 2019, 06:40 PM IST
- HPCL, a subsidiary of ONGC, signed a debt syndication agreement with the consortium of nine lenders led by State Bank of India
- The project, where HPCL owns 74% stake and the balance is held by the Rajasthan government, will cost ₹43,129 crore
NEW DELHI : Hindustan Petroleum Corp Ltd's (HPCL) ₹43,129-crore refinery project in Barmer district of Rajasthan has achieved financial closure with tying up of a ₹28,753-crore loan from a consortium of lenders, the company said Monday.
"SBI is the lead lender with more than 50% share in the consortium," it said. "This is one of the largest project debt syndications in India."
The project, where HPCL owns 74% stake and the balance is held by the Rajasthan government, will cost ₹43,129 crore. Two-thirds of the project cost is being funded through loans and the remaining through equity by promoters.
It comprises a 9-million tonne a year oil refinery and a 2-million tonne per annum petrochemicals unit.
SBI Caps was the debt arranger, it added.
Prime Minister Narendra Modi on January 16, 2018, started work on the project that will be completed by 2022-23.
Originally, then Congress president Sonia Gandhi had laid foundation stone of the refinery on September 22, 2013.
The state government is giving ₹1,123 crore per annum for 15 years as an interest-free loan instead of previously envisaged tax breaks. This has resulted in reducing the financial burden on the state government from ₹56,040 crore to ₹16,845 crore.
As much as 4,400,40 acres of land is required for the project, out of which, 1,454 acres will be developed as a green belt.
Of the total project cost, ₹842 crore has been earmarked towards pollution-control measures.
This story has been published from a wire agency feed without modifications to the text.