IDFC sign Rs200cr loan agreement with Gujarat Petronet

Vol 7, PW 23 (11 Feb 04) News in Brief

Leading infrastructure finance institution IDFC has sanctioned a loan of Rs200cr ($43.47m) to Gujarat State Petronet to finance Phase-I of its ambitious 2,185-km natural gas transmission pipeline grid.

The loan agreement was signed on 2nd February. This is a nine year loan and will be used for completion of Phase-I of the pipeline construction, Gujarat Petronet tells PETROWATCH.

GSPL is also considering using the loan proceeds for Phase-II of pipeline construction, expected to start in 2005. This is one of the options we have, he adds.

GSPL reckons it can start repaying the loan within four years of Phase-I start-up. Phase-I will see construction of 525-km of pipeline of which 208-km is already operating and generating revenue.

Soon, GSPL expects to complete construction of an 18-km pipeline connecting Gujarat Alkalies Corporation supply station to the Petronet-LNG terminal at Dahej.