Hindalco: Rs 8000 crore rupee debt for Mahan Aluminium Project

Aditya Birla group owned Hindalco is raising Rs 8000 crore rupee loan for its Mahan Aluminium project. The lenders include SBI Caps, Kotak Mahindra Bank, Citibank & Royal Bank of Scotland. The average interest rate for the rupee is loan is 10.25%. Hindalco is expected to sign the deal with the banks before the end of this financial year.

The management had stated earlier that the debt equity ration for the project will be 75:25. Hindalco is looking to commission the Mahan Aluminium project by October 2011.The coal requirement for the captive 900 MW power plant at the site will be met from the Mahan Coal block allotted to Mahan Coal Ltd, a joint venture between Hindalco and Essar Power Ltd. The Mahan coal block is awaiting forest clearance approval before further progress can be made.

The Prime Minister has set up a group of Ministers (GoM) to sort out environmental issues hurting coal production and to also look in to cases of mining approvals. The coal and environment ministries had locked horns over the issue after the latter last year classified 203 coal blocks under 'no go' area prohibiting mining there. Hindalco is looking to commission the Mahan project by October 2011.