Hindustan Petroleum Corp Ltd's (HPCL) Rs 43,129-crore refinery project in Barmer district of Rajasthan has achieved financial closure with tying up of a Rs 28,753-crore loan from a consortium of lenders, the company said on Monday.
HPCL, a subsidiary of state-owned Oil and Natural Gas Corp (ONGC), signed a debt syndication agreement with the consortium of nine lenders led by State Bank of India, a company statement said.
"SBI is the lead lender with more than 50 per cent share in the consortium," it said. "This is one of the largest project debt syndications in India."
The project, where HPCL owns 74 per cent stake and the balance is held by the Rajasthan government, will cost Rs 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 Rs 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 Rs 56,040 crore to Rs 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.
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