Haldia Petrochemicals Ltd has secured loans amounting to $375 million from Indian financial institutions and banks.
The sponsors of the $1.4-billion Haldia project have already subscribed to 51 per cent of the total equity requirement of approximately $550 million.
Haldia Petro is sponsored by the West Bengal Industrial Development Corporation (WBIDC), the Chatterjee Petrochem (Mauritius) Company and the House of Tatas represented by Telco and Tata Electric Companies.
Of the $375 million, the contribution from financial institutions amounts to nearly $264 million while the banks have lent nearly $111 million. Besides, another $127 million has come as export credit loans from Japan Export Import Bank and Haldia Petro is at an advanced stage in
securing loans and guarantees from other financial institutions and banks.
Construction work has already commenced at the site. All the process licensers have been selected and Haldia Petro has completed the basic engineering design of all the process units.
Toyo Engineering Corpo-ration of Japan is the turnkey contractor for the Haldia project. While, Daelim Engineering Co. Ltd. Of Korea shall construct two of the polymer process units. All construction contracts have liquidated damages for delay.
In order to develop the market for Haldia Petro's polymer products in the eastern region, the company has embarked on a pre-marketing programme designed to develop a large customer base prior to starting commercial operations.
The project envisages setting up of an integrated naphtha-based petrochemical complex at Haldia comprising a naphtha cracker and associated process units which will produce 420K tpa ethylene, 210K tpa propylene, 75K tpa benzene, 74K tpa butadiene and 300K tpa pyrolysis gasoline hydrogenated.
Other by-products available from the naphtha cracker are C4 raffinates -- 63K tpa, C6 raffinates -- 50K tpa and carbon black feed stock -- 62K tpa.
The olefins plant would have a latent capacity to produce up to 4,76,000 tons of ethylene, with the addition of some balancing equipment.
The associated units of the olefins plant -- benzene extraction, butadiene extraction and pyrolysis gasoline hydrogenated -- as well as all offsites and utilities will have the capacity to handle the additional quantity when the olefins plant capacity is expanded.
Ethylene and propylene will be used to manufacture high-density polyethylene (HDPE), linear low density polyethylene (LLDPE) and polypropylene (PP).
The by-product streams would be marketed to potential entrepreneurs planning to set up downstream chemical industries.
The project envisages installation of a combined-cycle captive power plant and a nitrogen plant, to meet the requirements of steam, power and nitrogen on a build own operate basis.
