APRIL 20249TOP STORIESIOC TO CONSTRUCT A NINE MILLION TONNE CAPACITY OIL REFINERY IN CHENNAIState-owned Indian Oil Corporation (IOC) announced on Thursday its decision to increase its stake in the joint venture responsible for constructing a Nine million tonnes refinery in Chennai to 75 percent. This decision comes after the project's cost escalated by over 12 percent. Initially, IOC and its subsidiary Chennai Petroleum Corporation (CPCL) were slated to hold a 25 percent stake in the joint venture, with the remaining 50 percent equity coming from financial investors.In a filing with the stock exchange, IOC stated that its board, during a meeting on Thursday, "approved the revision in the project cost from `29,361 crore to `33,023 crore." Additionally, the board approved a change in the capital structure of the joint venture, with IOC holding 75 percent equity and CPCL holding 25 percent.The reasons for the cost escalation were not provided by the company.IOC's board had previously approved the implementation of a 9 million tonnes per year refinery at Cauvery Basin, Nagapattinam in Tamil Nadu, by CPCL on January 29, 2021. This refinery aimed to address the demand for petroleum products in southern India. Approval was also granted for the formation of a joint venture between IOC and CPCL, with an equity holding of 50 percent each, alongside the involvement of financial/strategic/public investors. Consequently, the joint venture company named 'Cauvery Basin Refinery and Petrochemicals (CBRPL) was incorporated on January 6, 2023. ADANI ENERGY SEEKING TO RAISE $600M IN CREDITAdani Energy Solutions, a unit of India's Adani Group, is reportedly in talks to secure a credit facility of up to $600 million to finance smart meter projects for electricity supply. The company is engaging with a consortium of global lenders for this financing, with the potential loan duration ranging from three to five years. Pricing for the loan is expected to be tied to the Secured Overnight Financing Rate.In December, Adani Energy Solutions entered into a partnership with UAE-based Esyasoft to undertake smart meter projects in India and abroad. The company has already received smart meter installation orders totaling 23 billion rupees ($276 million) in the quarter ended December. Additionally, it has expanded its transmission network by 302 circuit kilometers, as per filings earlier this year.India's plan to deploy 250 million smart meters nationwide has attracted investments from various companies, including Schneider Electric SE and Electricite de France SA. These smart meters are seen as crucial tools for Indian power distribution companies to address billing inefficiencies, which have contributed to financial losses and high debt burdens.Despite facing challenges, such as being targeted by US short seller Hindenburg Research last year, the Adani Group has been regaining investor confidence. The conglomerate, which operates coal plants and ports among other ventures, recently witnessed strong demand for its first public bond sale since the shortseller controversy.
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