The State Bank of India-led consortium of 26 lenders, including banks and Life Insurance Corporation (LIC), has committed Rs 7,793 crore to the Bathinda refinery project in Punjab.
The project called Guru Gobind Singh Refinery Ltd (GGSRL), is a joint venture between Hindustan Petroleum Corporation Limited (HPCL) and Mittal Energy Investments, Singapore. SBI Capital Markets (SBICAP) is the sole financial adviser and arranger for the project. The money will be used to construct a 9-mmtpa greenfield refinery at Bathinda. The project, which has a debt-equity ratio of 1.5:1, envisages an outlay of Rs 13,789 crore. HPCL and Mittal Investments will be equal partners in the joint venture (49% each). The remaining 2% will be raised from financial investors.
