CPCL released the work order on 23rd September 2021 to “SBI CAPITAL MARKETS LIMITED, MUMBAI” a subsidiary of State Bank of India, on behalf of the JV company to be formed, for providing the Financial Advisory, Debt and Quasi Equity Syndication services for the Greenfield 9 MMTPA refinery being undertaken at Nagapattinam, Tamil Nadu at a capex of Rs.31,580 crore.
The Letter of Acceptance was handed over by Shri Rajeev Ailawadi, Director (Finance), CPCL to Shri Supratim Sarkar, Vice President and Group Head, SBI Caps in the presence of Shri S K Gupta, Director (Finance), IOCL and Shri Arvind Kumar, Managing Director, CPCL. Shri S Krishnan, Director (Operations), CPCL, Shri H Shankar, Director (Technical), CPCL, Shri Debasish Roy, ED (Finance), IOCL, Shri Ruchir Agarwal, CGM (Corporate Finance and Treasury), IOCL, Shri S. Venkateswarn CGM (Finance) and other senior officials from CPCL and SBI Caps. Shri Arun Mehta, MD and CEO, SBI Caps, Shri Sanjay Kaushal, ED (Corporate Affairs), IOCL, Shri. GDS Kohli (CGM-F , Corporate Affairs) IOCL, attended the function virtually.
SBI Caps is being engaged to assist in identification of seed investors / and also invest in equity/ quasi- equity to the extent of Rs.5000 crore and also for arranging debt to the tune of Rs. 20,000 crore for this prestigious project. The financial closure of the project is expected to be achieved within 6 months. The active support of the Government of Tamil Nadu is also received by way of approval of the land acquisitions to the extent of about 658 acres and release of the requisite Government Gazette Notifications etc.,
The project is expected to supply valuable fuels like Motor Spirit and High Speed Diesel to the hinter lands of Tamil Nadu and adjoining areas and also has export potential with a mix of petrochemical product, viz, PolyPropylene.
The funding activity coupled with the project activities to be on stream as per the schedule, will foster development to the district and the state as well. This project will definitely be a feather in the cap of the industrial map of Tamil Nadu and IOCL group.