Reliance Petroleum (RPL) has, for the first time, admitted that it has incurred some losses due to the Gujarat earthquake on January 26, 2001. The company had earlier claimed that it did not suffer in any way due to the earthquake.
In its latest annual report, the company has said: "There was a shutdown and consequent business loss due to the Gujarat earthquake. The company has made insurance claim for loss of revenue, increased cost of working and other like losses.
Pending settlement of claim, the additional operating costs and shutdown-related losses amounting to Rs 64.64 crore, has been charged under respective heads of expense in the profit and loss account. Further necessary adjustment will be made in the year in which the claim is settled, it said in the annual report.
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In Gujarat, RPL has the world's largest grassroots refinery. It is the seventh refinery in the world at any single site, with a capacity of 27 million tonne per annum at Jamnagar.
The refinery has been set up at a capital cost of Rs 14,250 crore, around 30 per cent lower on a per tonne basis with comparable plants.
During the year, RPL has made a long-term investment of Rs 400.01 crore in Reliance Power. For this purpose, RPL has subscribed to 1,60,260 deep discount bonds of Reliance Power of face value of Rs 1 lakh each, the company said in its annual report for 2000-01.
RPL has prepaid its entire outstanding long term loans of Rs 961 crore from the Industrial Development Bank of India. RPL has also refinanced higher cost rupee debt amounting to Rs 3,890 crore to take advantage of the declining interest rate environment.
RPL has refinanced its outstanding foreign currency loan of Rs 604 crore thereby achieving an interest saving of over 50 basis points per annum, the annual report said.
RPL meets its working capital requirements through committed rupee credit lines, provided by a consortium of Indian and foreign banks.
These credit lines are fixed annually and are reviewed on a quarterly basis. RPL has also significantly enhanced its pre-shipment export financing programme, owing to the substantial level of exports.