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Friday, June 29, 2012

The Gurjarat State Petronet Limited achieves financial closure for its Rs 7,255-crore Mallavaram-Bhopal-Bhilwara-Vijaipur 1,738-km pipeline project

Ahmedabad, June 29:

The Gujarat State Petronet Ltd led joint venture GSPL India Transco Ltd (GITL) announced the financial closure for its Rs 7,255-crore Mallavaram-Bhopal-Bhilwara-Vijaipur 1,738-km pipeline project on Friday.

GITL signed an agreement for syndicating a loan of Rs 5,080 crore with a consortium of 14 banks for the pipeline project. It was facilitated by SBI Capital, the lead manager for the project. The stipulated time-frame for project completion is by July 2014.

“The financial closure by GITL is a major step towards implementation of three cross-country pipeline projects, which would establish GSPL as a pan-India player in natural gas transmission,” the GITL Chairman, Mr Tapan, Ray told newspersons.

“The cost of pipeline project is about Rs 7,255 crore, out of which Rs 2,175 crore will be raised through equity infusion by the joint venture partners,” he said.

The debt-to-equity ratio for the projects is 70:30. The pipeline will have initial capacity of 56 million metric standard cubic metre per day (mmscmd), which can go upto 76 mmscmd.

GSPL, the major promoter of GITL, holds 52 per cent stake, while other JV partners such as IOCL, BPCL and HPCL will have 26 per cent, 11 per cent and 11 per cent stakeholding respectively.

GSPL, promoted by state-integrated energy company Gujarat State Petroleum Corporation, had bagged three cross-country pipeline projects Mehsana-Bhatinda (1,611 km), Bhatinda-Srinagar (740 km), and Mallavaram-Bhopal-Bhilwara-Vijaipur (1,738 km), in July 2011 through a bidding process.

GSPL-led another joint venture GSPL India Gasnet Ltd (GIGL) has already achieved financial closure to implement Mehsana-Bhatinda-Jammu-Srinagar pipeline project of Rs 6,449 crore, having a total combined length of 2,351 km, in January this year.

Source: The Hindu

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