MUMBAI: Energy giant Reliance Industries Ltd (RIL) has approached the international markets again,

this time to raise funds for its ambitious $11 billion (Rs 55,000 crore) Jamnagar phase three expansion project, popularly called as J-3 mega petrochemicals project, aimed at doubling its petrochemicals production for further consolidating its global leadership position.

The project envisages setting up of mega petrochemical units, a gasification plant and refinery off-gas cracker, among others.

RIL officials were in Rome on Thursday to sign an agreement for $400 million loan facility from Italian insurer and finance group SACE Spa.

The company is also in talks to tap funds from US Export Import Bank for this prestigious project, "This $400 million transaction , the fourth one concluded with RIL since 2004, brings $1 billion the overall credit facilities backed by SACE for the major Indian group. Jamnagar phase 3 project is one of the projects supported with this transaction. The funds will be used for the expansion and upgrading of the production capacity of its petrochemical plants, a gasification plant and refinery off-gas cracker as part of an investment plan in India worth over $ 11 billion," SACE CEO Alessandro Castellano told TOI without specifying the term and interest rate for the loan.

RIL has signed agreements with some of the major Italian firms including Salmoiraghi Group, Chemtex Italy, and Polimeri Europia, the whollyowned subsidiary of ENI of Italy for the J-3 project. A RIL spokesperson also confirmed firm's fund-raising plans for the petrochemical projects, without specifying any details.

The company is also in talks with various global firms from US to Europe for tie-ups , joint ventures and technology collaboration. The SACE guarantee will support the contracts for the supply of goods and services awarded to several Italian companies, especially SMEs while the US Exim loan will support the contracts for the supply of goods and services awarded to several US firms.

Besides, RIL had signed some 'in-principal' agreements with some of the leading players for the J-3 project that includes its joint venture collaboration with Russian SIBUR for production of butyl rubber plant with capacity of 1,00,000 tonnes.

Once commissioned, RIL will become one of the largest producers of butyl rubber globally. The largest integrated global polyester producer with capacity of 2.4 million is in process of scaling its capacity to 3.6 million tonnes. RIL is also setting up 1.5 million tonnes olefin cracker unit, which will be among the largest and most competitive facilities globally.

Source :timesofindia.indiatimes.com