Adani Group approaches SBI for Rs 14,000 crore loan: Report
Adani Group has approached State Bank of India (SBI) for a loan worth Rs 14,000 crore to construct a new factory at Mundra in Gujarat. The new facility is planned to make polyvinyl chloride (PVC) from coal, according to a Mint report. The total cost of setting up the project is expected to be around Rs 19,000 crore.
The demand for the PVC plant comes just days after Adani Group secured a loan worth Rs 6,071 crore for a new copper refinery in Mundra on June 26. It was guaranteed by one of the group’s subsidiaries, Kutch Copper Limited.
In March, the Gautam Adani-led group also secured a loan of Rs 12,770 crore for a new international airport project in Navi Mumbai from SBI. The loan was contracted by Navi Mumbai International Airport Pvt Ltd (NMIAL), another subsidiary of the group.
The loan was then guaranteed by SBI and sold to other lenders. Similarly, the bank is also planning to come up with a plan to secure the loan from the PVC plant in the future, keeping only Rs 5,000 crore from the total loan amount, according to the Mint report.
Other lenders will also reportedly assess the loan proposal to see if they could take on some exposure.
The plant is expected to be part of Adani Group’s plans to develop a petrochemical hub in Mundra. It will have a production capacity of 2,000 kilotonnes per year (KTPA) and will manufacture products such as emulsion PVC, suspension PVC and chlorinated PVC.
The company, in its annual report for 2021-22, had stated that a total capacity of 2 million metric tons of PVC will be developed at Mundra, in a phased manner. The 2,000 KTPA project will be completed in the first phase and is expected to be commissioned by 2024.