Rosneft-backed Nayara Energy has tied up funding of Rs 4,000 crore from a State Bank of India-led lenders’ consortium for its first petrochemicals project.
The company plans to use the funds to set up a 450,000 tonnes per annum polypropylene plant at its Vadinar refinery in Gujarat, Nayara said in a statement. The company is already in possession of the required land.
The loan facility carries a tenor of over 15 years, the company said.
“The financial closure brings to fruition our growth plans to become one of the largest integrated energy and petrochemicals complexes in the country,” said Alois Virag, Chief Executive Officer, Nayara Energy.
The demand for polypropylene is expected to grow at around 10% per annum, Virag said. The project is expected to be completed in 2023.
“The project will provide a boost to the profitability of the Company,” said Anup Vikal, Chief Financial Officer, Nayara Energy.
Nayara Energy operates a 20 million tonnes a year refinery in Gujarat and more than 6000 fuel retail outlets across the country. Nayara Energy, formerly known as Essar Oil, was acquired from Ruias four years ago by Rosneft and an investment consortium comprising commodity trading firm Trafigura and UCP Investment Group.