HPCL to raise Rs 28,000 crore from SBI-led consortium for Rajasthan refinery

HPCL to raise Rs 28,000 crore from SBI-led consortium for Rajasthan refinery

Hindustan Petroleum Corporation Ltd (HPCL) will raise Rs 28,000 crore from a consortium led by State Bank of India (SBI) to fund the construction of a greenfield refinery and petrochemical complex in Rajasthan.

The facility will come up in Barmer district of Rajasthan. Speaking to BusinessLine, J Ramaswamy, Director (Finance), HPCL, said, “We have mandated SBI Caps to arrange the funds and mostly SBI will be the lead financier.”

The state run fuel major’s nine million tonnes per annum (mmtpa) refinery and petrochemical project will cost Rs 43,129 crore and is funded on a debt-equity ratio of 2:1. HPCL has invested Rs 600 crore in the project, which is slated for completion by 2022.

According to HPCL Chairman and Managing Director Mukesh Kumar Surana, “In another three weeks, we should be doing the financial closure for the project.”

Image Credit : thehindubusinessline.com