Gujarat State Petronet (GSPL) has announced that GSPL led joint venture company namely GSPL India Transco has entered into an agreement on 29 June 2012 for syndicate loan of Rs 5,080 crore with a consortium of 14 banks for its upcoming Mallavaram - Bhopal - Bhilwara - Vijaipur Pipeline Project.
Further, the another joint venture company of GSPL namely GSPL India Gasnet had entered into an agreement for Syndicate loan of Rs 4516 crore with a consortium of 12 banks for its Mehsana - Bhatinda - Jammu - Srinagar Pipeline Project.
With this, GSPL led joint venture companies have achieved financial closure for the three cross country pipeline projects. The total investment for these three projects would be Rs 13,704 crore out of which 70% fund will be arranged through debt syndication of Rs 9596 crore and the rest 30% will be raised through equity infusion of Rs 4108 crore by the joint venture partners viz Gujarat State Petronet (52%), Indian Oil Corporation (26%), Bharat petroleum Corporation (11%) & Hindustan Petroleum Corporation (11%).