Business Daily from THE HINDU group of publications
Thursday, Jul 05, 2007
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Business Daily from THE HINDU group of publications Thursday, Jul 05, 2007 ePaper |
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Corporate
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Overseas Borrowings Industry & Economy - Petroleum
The Union Minister for Petroleum and Natural Gas, Mr Murli Deora (left), and the Industry Minister, Mr Ashwini Kumar, during a meeting to review HPCL-Mittal’s Bhatinda refinery progress in New Delhi on Wednesday. —
Our Bureau New Delhi, July 4 Guru Govind Singh Refinery Ltd (GGSRL), which is executing the nine-million-tonne Bhatinda refinery, plans to raise $1 billion in foreign borrowings over four years to fund the project. The company is in the process of firming up Rs 8,000 crore loan from a consortium of 26 banks led by State Bank of India for the project. Joint venture
GGSRL, which is a joint venture of the LN Mittal Group and Hindustan Petroleum Corporation Ltd (HPCL), is expected to arrange necessary funds within this month, Mr Arun Balakrishnan, Chairman, HPCL, said. The Rs 18,919-crore project would achieve financial closure this month, he said. HPCL and Mittal Energy Investments Pte Ltd would hold 49 per cent stake each in GGSRL The balance two per cent would be given to financial institutions. Mittal Investments were allowed last month to buy stake in the refinery through its wholly-owned subsidiary Mittal Energy Investments Pte Ltd (MEI). The Union Cabinet, as an exceptional case, allowed Mittals to invest in the project, as the current policy permits only 26 per cent foreign direct investment in public-sector oil refineries. The project is expected to be commissioned by 2010-end. Equity investment by HPCL and Mittal Investments (through MEI) comes to Rs 3,506 crore each and by FIs Rs 143 crore. Project status
Reviewing the project status, here today, the Union Petroleum Minister, Mr Murli Deora, said that that his priority is to see the completion/commissioning of this project rather than laying its foundation stone. He also addressed a delegation of the Members of Legislative Assembly of Punjab led by Ms Rajinder Kaur Bhattal, Leader of the Opposition in Punjab Legislative Assembly, on the issue. He asked the promoters of Bhatinda refinery to expedite setting up this project on fast track. Jobs
The project will create a lot of jobs directly and indirectly in Punjab. This will give a boost to industrialisation and development of ancillary industries. It will also improve the distribution efficiency of petroleum products in the North West region. Further, it will enhance the national capabilities of providing latest quality/environment friendly products.
More Stories on : Overseas Borrowings | Petroleum | Hindustan Petroleum Corporation Ltd
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