The corporate debt restructuring (CDR) cell for Haldia Petrochemicals (HPL) has approved the company's additional bank finance needs to fund its expansion project.
"The borrowings committee of the CDR cell has given the nod at its meeting held on Saturday," a source close to the development told PTI.
The CDR sanction would help HPL to raise additional bank finance of Rs 400 crore to part finance the delayed 'Supermax' expansion project.
While the initial project cost worked out at Rs 675 crore, time overrun led to a huge cost overrun making the project cost Rs 1,230 crore.
The consortium of banks had earlier agreed to provide a debt of Rs 600 crore. However, the HPL management sought additional bank finance to meet the gap.
The company had also chipped in Rs 230 crore from internal accruals.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app