A consortium of 20 banks today committed a 14-year term loan of Rs 6,387 crore for a 6 MMTPA greenfield refinery proposed by Bharat Oman Refinery (BORL), a joint venture of Bharat Petroleum Corporation and Oman Oil Corporation.The refinery would be set up at Bina in Madhya Pradesh. The project includes associated infrastructure comprising crude receiving facilities at Vadinar in Gujarat, a 935 km long cross country pipeline and a captive power plant of 126 MW.The cost of BORL project is Rs 10,378 crore and the refinery is expected to meet the growing demand for petroleum products in the region, where currently petroleum products are supplied by coastal refineries after incurring significant transportation costs.SBI Capital Markets was the sole financial advisor and arranger for the transaction. It said the BORL transaction is the country's largest syndicated project finance deal.The entire land for the Project has already been acquired and all the requisite permits and approvals required have already been obtained. The construction work for the refinery have already begun and will take 4 years to complete. The refinery will commence production from January 2010, and will produce petroleum products compliant with Euro III & the futuristic Euro IV norms.
