IHB to raise Rs 6,700 crore to complete Kandla-Gorakhpur LPG pipeline

IHB, a joint venture of oil marketing companies, plans to raise Rs 6,700 crore through term loans to complete 2,757-km-long Liquified Petroleum Gas (LPG) pipeline project from Kandla in Gujarat to Gorakhpur in Uttar Pradesh.
 
The project, being executed at a capital cost of Rs 10,000 crore, will be funded with Rs 6,730 crore of debt and Rs 3,360 crore of equity. The sponsors will be required to make 25 per cent equity contribution upfront before the first disbursement of loan, according to the draft term sheet.
 
IHB’s sponsors are Indian Oil Corporation (50 per cent stake), Hindustan