Adani to enter copper manufacturing biz, raises Rs 6,071 crore loan from SBI, other PSU banks

This financial closure (loan of Rs 6,071 crore) enables us to accelerate the copper project and complete it within the set timelines. The project has requisite technology tied up and the construction works at the site are progressing well. It is scheduled to commence production during the first half of 2024, Adani Enterprises said.
Gautam Adani

Adani to enter copper manufacturing biz, raises Rs 6,071 crore loan from SBI, other PSU banks

New Delhi: Gautam Adani-led ports-to-energy conglomerate Adani Group is set for an entry in copper manufacturing as it raised Rs 6,071 crore in debt to develop a one-million-ton per annum (MTPA) copper plant in Gujarat. The company has tied up finances from public sector lenders.
An SBI-led consortium of banks has sanctioned the entire loan amount for the development of phase-1 of the copper project. The other consortium members are Bank of Baroda, Canara Bank, Exim Bank of India, Indian Bank, Punjab National Bank, and Bank of Maharashtra.
The news comes a few days after Anil Agarwal’s Vedanta put its Tamil Nadu copper unit on sale.
"Kutch Copper Ltd (KCL), a subsidiary of Adani Enterprises Ltd (AEL), is setting up a greenfield copper refinery project for production of refined copper with 1 million tonnes per annum in two phases," the company said in a statement.
Adani Enterprises said the Gujarat plant will be one of the largest copper refinery complexes in the world, and will commence production in two years. Vedanta’s Tamil Nadu unit, which has been shut since 2018 over alleged pollution violations, used to cater to 40 per cent of India’s copper needs.
Adani Enterprises incubates new business ventures for India’s third largest conglomerate in terms of market value and incorporated Kutch Copper on March 24, 2021 to manufacture copper materials.
Production to start during first half of 2024
“This financial closure (loan of Rs 6,071 crore) enables us to accelerate the copper project and complete it within the set timelines. The project has requisite technology tied up and the construction works at the site are progressing well. It is scheduled to commence production during the first half of 2024,” Adani Enterprises director Vinay Prakash said.
The company has not shared anything about the total cost for the 1MTPA copper plant in Mundra but said it entails a mix of debt and equity.
Adani’s newest venture will have Aditya Birla Group’s Hindalco (India’s largest copper producer) and the government-owned Hindustan Copper as its competitors. Meanwhile, India has become a copper importer post the closure of Agarwal’s Tamil Nadu plant.
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