Thaindian News

Hyderabad, Jan 6 (IANS) The US Export Import Bank (Exim Bank) has only received a proposal for and not granted any loan for Amerind Petroleum Private Ltd’s proposed petroleum refinery project in Andhra Pradesh, its chairman and president Fed P. Hochberg clarified here Friday.

He told reporters that Exim Bank had only received a proposal. “We have not yet reviewed the proposal,” he said when asked to comment on the Rs.120 billion petroleum refinery that Amerind proposes to set up near Vishakhapatnam, in joint technical collaboration with US-based American Industrial Corporation (AIC).

Hochberg said only a Letter of Interest was issued for the project.

“We told them if they make a business case we will review it,” he said.

He was responding to a query about the project for which the Andhra Pradesh government signed a Memorandum of Understanding with Amerind after the latter reportedly informed the state government that Exim Bank had approved the loan.

Under the MoU signed in November last year, Amerind will establish a refinery complex in the petroleum, chemicals and petrochemical investment region (PCPIR) near Viskhapatnam by relocating an existing US refinery.

It was announced that the first phase of the project would be set up on turn key basis at an estimated cost of $505 million by AIC by relocating an existing and running refinery acquired by it in the US.

In the second phase, the project would be expanded to a total refining capacity of 15 million tons per annum along with a petro chemical complex, at an additional cost of Rs.86.11 billion.

Amerind had informed the state government that Exim Bank will provide a loan funding of $375 million for US costs of the project and up to 30 percent of this for local costs in India.