Haldia Petro Project Gets Under Way
Work on the Haldia Petrochemical (HPL) naptha cracker plant began on Thursday. HPL directors told reporters after yesterday's board meeting that the zero date for the project has been fixed at January 30.
Ratan Tata, the minority equity partner on behalf of the House of the Tatas, described the announcement as a major event and evidence of the promoters' commitment. Purnendu Chatterjee of the Soros Chatterjee combine said the mechanical completion of the naptha cracker plant will require 27 months and commercial production can begin after three more months.
Board members said deferred payment guarantee (DPG) to the extent of $140 million has been obtained from Japan's Exim Bank on January 30.
The Industrial Development Bank of India (IDBI), the Industrial Finance Corporation of India (IFCI), Industrial Credit and Investment Corporation of India (ICICI) and the State Bank of India are involved in the project.
The total cost of the petrochemical project stands at Rs 5,170 crore with a debt equity ratio of 1.6:1.
The three promoters, WBIDC, Chatterjee Soros Mauritius Petrochemicals and Telco, have stakes in the ratios of 3:3:1.
Already, Rs 505 crore has been pumped in by the promoters.