1 min read.Updated: 26 Aug 2021, 04:18 PM ISTLivemint
Nayara Energy was acquired by Russian energy major Rosneft and a consortium comprising of Trafigura and UCP Investment Group in August 2017. It runs a 20 million metric tonne per annum refinery at Vadinar in Gujarat
NEW DELHI: Rosneft-owned Nayara Energy on Thursday said it has inked a financial agreement with a State Bank of India-led consortium for a project term loan of Rs4,016 crore for expansion into petrochemicals business.
This proposed investment in the petrochemical business comes at a time when there is a shortage of petrochemicals in the country with prices going up.
“Nayara Energy, a downstream energy company of international scale today announced that it has achieved financial closure for phase one of its expansion plans into petrochemicals. The company signed a financial agreement with a consortium of banks led by State Bank of India for a project term loan of INR 4,016 crore," the company said in a statement.
There is a growing interest in India’s petrochemicals sector. A case in point being Russia’s largest integrated petrochemicals company PJSC SIBUR Holding in talks with state-owned Indian Oil Corporation Ltd (IOC) to enter into a partnership for setting up large petrochemical capacity in India as reported by Mint earlier.
“The company proposes to use the funds to set-up a 450 KTPA polypropylene plant at its Vadinar refinery in Gujarat. The company is already in possession of required land and does not need to acquire fresh parcels for the upcoming project," the statement added.
India’s petrochemicals manufacturing space has major players such as Mukesh Ambani-led Reliance Industries Limited and Indian Oil Corp. Also, Adani Enterprises Ltd recently incorporated Adani Petrochemicals Ltd as a wholly-owned subsidiary marking the Gautam Adani-controlled firm’s entry into the sector.
“The demand for polypropylene is expected to grow at around 10% per cent per annum. The construction of the first phase of the petrochemicals project is expected to be completed in 2023," Dr. Alois Virag, chief executive officer, Nayara Energy, said in the statement.
Nayara Energy was acquired by Russian energy major Rosneft and a consortium comprising of Trafigura and UCP Investment Group in August 2017. It runs a 20 million metric tonne per annum refinery at Vadinar in Gujarat.