Additional bank finance required to fund Haldia Petrochem’s expansion project approved

12-Oct-09

Haldia Petrochemicals Ltd’s Supermanx project expansion cost that was initially pegged at Rs 675 crore has almost doubled to Rs 1,230 crore due to a time overrun. HPL’s consortium of lender banks had earlier agreed to provide a debt of Rs 600 crore, while the company contributed Rs 230 crore from internal accruals. But the HPL management sought additional bank finance to meet the gap. Additional bank finance to the tune of Rs. 400 crore required to fund Haldia Petrochem’s expansion project has been sanctioned. The borrowings committee of Haldia Petrochemicals (HPL)’s corporate debt restructuring (CDR) cell has approved additional bank finance required to fund its expansion project. With this step, HPL will help to raise additional bank finance of Rs 400 crore to part finance the delayed 'Supermax' expansion project.