The government has allowed the Hyderabad-based Rain Calcining Ltd(RCL), a 100 per cent export oriented unit (EOU), to increase its equity base through fresh induction of foreign funds.
The approval will permit the company to hike its capital base from Rs 110 crore to Rs 129 crore primarily through an increase in the amount of foreign equity from Rs 82.5 crore to Rs 95.83 crore.
RCL had sought permission to hike its equity base in order to fund the cost of increasing the capacity for producing calcined petroleum coke and power through co-generation.
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The hike in capacities is expected to cost around Rs 350 crore with a debt component of Rs 220.5 crore which is to be raised from IDBI & IFC, Washington. The ministry of petroleum and natural gas has approved the proposal.
The company has a technical collaboration with the US-based Calciner Industries Inc for the manufacture of 2.5 mt calcined petroleum coke and 25 mw power under the export oriented unit scheme.
Calcined petroleum coke is a critical raw material used for producing primary aluminium, and is also used in the manufacture of steel through the electric arc furnace method.
As per the new equity structure, out of the total foreign equity of Rs 95.83 crore, Applied Industrial Material Corp will hold 5 per cent (Rs 6.47 crore), IFC, Washington will hold 15 per cent (Rs 19.42 crore) and Houston Engineering will hold 25 per cent (Rs 32.37 crore).
While the NRI equity (repatriable) holding will account for Rs 27.19 crore or 21 per cent, NRI (non-repatriable) would be to the tune of Rs 10.36 crore amounting to 8 per cent of the equity.