The Export-Import Bank of US today clarified that it had issued only a Letter of Interest (LoI) to Hyderabad-based Amerind Petroleum Pvt Ltd and not granted any loan for setting up a petroleum refinery in Visakhapatnam.
"We have not reviewed the Amerind project but we have issued a Letter of Interest. We haven’t granted any loan for the project," Exim Bank Chairman and President Fred P Hoghberg said here today.
Talking to media after separate meetings with Andhra Pradesh Chief Minister N Kiran Kumar Reddy and Major Industries Minister J Geeta, Hoghberg said the Exim Bank had only said it would financially support the refinery project after taking a look at it.
"It surely doesn’t mean we have already granted the loan," Hoghberg said, reacting to the controversy surrounding the Rs 11,000 crore project proposed at the Petro-Chemical, Petroleum Investment Region at Visakhapatnam.
Amerind, which has a joint technical collaboration with American Industrial Corporation, has signed an MoU with the Andhra Pradesh government on November 17 to set up the refinery with an initial capacity to process 7.5 million tonne of crude oil per annum in the first phase.
Amerind said it would relocate a working refinery from USA in the proposed unit at the PCPIR, near the industrial zone in Visakhapatnam, and produce the entire range of petroleum products meeting the Euro-IV standards.
However, it came to light later that the said refinery was shut down in the US as it did not meet environmental norms. Now, it has emerged that contrary to claims made by it the company is yet to secure loan from the Exim Bank of US for the project.
"Granting of loan will be subject to the party having sufficient equity and meeting other requirements," the Bank chairman pointed out.
"We will not discuss projects that have not yet been approved. All I can say is we have a set of due diligence and approval process in place before giving loans," he added.
The Exim Bank chief said they were focusing on a handful of countries, including India that was among the fastest growing markets.
"We have committed $7 billion for various projects in India in energy, renewable energy, transportation and other sectors," Hoghberg said.
