Paharpur Chemicals and Fertilisers, the Rs 1,600-crore project at Haldia, is in talks with financial institutions to form a consortium to extend loans for the project.
The debt-equity ratio has been fixed at 2.5:1, which means that the promoters expect to bring in around Rs 1,145 crore as term loan from various Indian and foreign financial institutions.
Sources say that the firm expects to put in a formal application for term loan with the Industrial Development Bank of India by January 31.
External commercial borrowings to the extent of 35 per cent of the project is being allowed by the Reserve Bank of India.
At present, the company is putting together its formal application along with the detailed feasibility repor, which was prepared by Technimont ICB of Italy.
The Swarups, the owners of the Paharpur group, plan to appoint an Indian consultant to prepare a report for offsite facilities for the project, which is the third most important component of the project after the proposed ammonia and urea plants.
Sources say that the preliminary technical bids for the offsite facilities will be finalised by Febraury 20, and the final bids are expected to be received by the end of May this year.
Out of the Rs 1,600 crore project cost, the cost of setting up urea and ammonia plants is expected to touch Rs 750 crore, while the cost of offsite facilities such as water treatment, land and construction is estimated at Rs 850 crore.
The proposed project will also have a captive power plant of 20 to 24 MW.
The plant has a capacity of producing 1,500 tonnes of ammonia per day and 2,200 tonnes of urea daily. Paharpur Fertilisers and Chemicals was incorporated in August last year.
