Russia’s Rosneft-backed Nayara Energy recently claimed financially closing phase-one expansion plans for its foray into petrochemical business following the tie-up of ₹4,016 crore funds from banks. The firm, which runs a 20 million tonnes a year refinery at Gujarat’s Vadinar, is setting up a 450 kilo tonnes per annum polypropylene plant there.

“The company signed a financial agreement with a consortium of banks led by State Bank of India for a project term loan of Rs 4,016 crore,” it said in a statement. It has already acquired land for the proposed project.

In 2019, Nayara Energy had first announced its plans to expand into petrochemicals at the Vibrant Gujarat Summit.

“The loan facility carries a tenor of over 15 years and is amongst the largest private sector project finance deals in recent times,” a news agency quoted the statement as saying.

The project is proposed to be funded with a mix of debt and equity, it said without offering details.

The construction of the first phase of the petrochemicals project is expected to be completed in 2023.

In August 2017, Rosneft and an investment consortium comprising global commodity trading firm Trafigura and UCP Investment Group had acquired Essar Oil and renamed it Nayara Energy.

The company owns and operates India’s second largest single site refinery. It also operates a fuel retail network consisting of over 6,000 petrol pumps across India.

Fibre2Fashion News Desk (DS)

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