GSPL India Transco Ltd raises Rs 5080 crore from banks
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- Business & Industry
- Friday, 29 June 2012 19:38
- Published on Friday, 29 June 2012 19:38
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Gujarat Global News Network, Ahmedabad
GSPL India Transco Ltd (GITL), a joint venture of Gujarat State Petronet Ltd (GSPL) today entered into an agreement for syndicated loan of Rs. 5,080 crore with a consortium of 14 banks for its upcoming Mallavaram-Bhopal-Bhilwara-Vijaipur pipeline project.
Tapan Ray, IAS, MD, Gujarat State Petroleum Corporation (GSPC), who is also Chairman of GITL, signed the agreement with the consortium led by Bank of India. Other banks in the consortium include Punjab National Bank, Canara Bank, Union Bank, Corporation Bank, United Bank of India, Syndicate Bank, Indian Bank, Punjab & Sind Bank, Federal Bank, State Bank of Mysore, Dena Bank, Allahabad Bank and Vijaya Bank.
The total cost of the Mallavaram-Bhopal-Bhilwara-Vijaipur pipeline project is about Rs.
7,255 crore, out of which Rs. 2,175 crore will be raised through equity infusion by the JV partners, while the rest 70% fund will be arranged through debt. The stipulated timeframe for completion of the project, having provision for 1,585 km long pipeline, is 36 months.
While speaking at the occasion, hri Ray said, “The achievement of financial closure by GITL marks a major milestone towards implementation of the three cross-country pipeline projects, which would establish GSPL as a pan-India player in the natural gas transmission business. With debt syndication of Rs. 9,596 crore and equity infusion of Rs. 4,108 crore, total investment under these projects amounts to Rs. 13,704 crore.
These would be some of the largest infrastructure projects now being taken up in the country, specially when investments are needed to reinvigorate the economy. More importantly, both the syndication rounds witnessed huge lender interest with sanctions exceeding the requirement by over Rs. 1,500 crore each of the time. This undoubtedly reflects the confidence shown by the lenders in the ability of GSPL and other co-promoters.”
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