The corporate debt restructuring (CDR) cell for Haldia Petrochemicals (HPL) has approved the company's additional bank finance needs to fund its expansion project.
"The borrowings committee of the CDR cell has given the nod at its meeting held on Saturday," a source close to the development told PTI.
The CDR sanction would help HPL to raise additional bank finance of Rs 400 crore to part finance the delayed 'Supermax' expansion project.
While the initial project cost worked out at Rs 675 crore, time overrun led to a huge cost overrun making the project cost Rs 1,230 crore.
The consortium of banks had earlier agreed to provide a debt of Rs 600 crore. However, the HPL management sought additional bank finance to meet the gap.
The company had also chipped in Rs 230 crore from internal accruals.
