Positra Becomes First Sez To Achieve Financial Closure

The Rs 6,000-crore Positra special economic zone (SEZ) in Gujarat has become the first SEZ to achieve financial closure, with institutions led by the Industrial Development Bank of India (IDBI) clearing the financial package.

Commerce department sources told Business Standard that IDBI has sanctioned a package that comprises an equity component of Rs 100 crore and has also subscribed to secured convertible notes worth another Rs 100 crore.

The IDBI package, which was recently cleared by the board, also consists of a term loan of Rs 500 crore and a foreign currency loan of $64.24 million (about Rs 300 crore) to develop the SEZ at Positra in Gujarat. The debt requirement for the project is expected to be syndicated.

Sources said that 50 per cent of the promoters equity should be brought into the project before the amount is disbursed. They added that some modifications in the equity structure have, however, been proposed.

Officials said that the project cost is expected to come down now that the government provides customs duty benefits and infrastructure status to SEZ developers.