Reliance Industries Ltd (RIL) has approached the international markets to raise funds for its ambitious US$11 billion (Rs 55,000 crore) Jamnagar phase three expansion project. The project, also known as J-3 mega petrochemicals project aims to double petrochemicals production including setting up of mega petrochemical units, a gasification plant and refinery off-gas cracker. RIL officials have signed an agreement for US$400 mln loan facility from Italian insurer and finance group SACE Spa. The company is also in talks to tap funds from US Export Import Bank for this prestigious project, "This $400 million transaction , the fourth one concluded with RIL since 2004, brings $1 billion the overall credit facilities backed by SACE for the major Indian group. Jamnagar phase 3 project is one of the projects supported with this transaction. The funds will be used for the expansion and upgrading of the production capacity of its petrochemical plants, a gasification plant and refinery off-gas cracker as part of an investment plan in India worth over $ 11 billion," SACE CEO Alessandro Castellano told TOI without specifying the term and interest rate for the loan.
RIL has signed agreements with some of the major Italian firms including Salmoiraghi Group, Chemtex Italy, and Polimeri Europia, the whollyowned subsidiary of ENI of Italy for the J-3 project. The company is also in talks with various global firms from US to Europe for tie-ups , joint ventures and technology collaboration. The SACE guarantee will support the contracts for the supply of goods and services awarded to several Italian companies, especially SMEs while the US Exim loan will support the contracts for the supply of goods and services awarded to several US firms.