Adani Group has got a consortium of public sector banks to provide the entire debt requirement of Rs 6,071 crore for the first phase of its diversified copper manufacturing project.

The ports-to-energy conglomerate has tied up finances with the consortium of banks led by the State Bank of India (SBI) for the Phase-1 of the Kutch Copper Ltd (KCL) project at Mundra in Gujarat. 

The Adani Group’s foray into copper manufacturing has a plan to produce one million tonnes a year at the Mundra facility. “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 one million tonnes per annum in two phases,” the company said in a statement.

For the phase-1 capacity of 0.5 million tonnes, KCL has achieved financial closure through a syndicated club loan for the greenfield copper refinery project at Mundra, Gujarat.

The company said it has executed “financing documents with the consortium of banks led by SBI". The other consortium members are Bank of Baroda, Canara Bank, Exim Bank of India, Indian Bank, Punjab National Bank, and Bank of Maharashtra. 

The consortium of banks has sanctioned and signed an agreement for the entire debt requirement of Rs 6,071 crore for the Phase-1 of the KCL project.

Adani Enterprises Ltd director Vinay Prakash said 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 calendar year 2024.

“It will be one of the largest copper refinery complexes in the world, with benchmark ESG performance standards, leveraging state-of-the-art technology and digitalisation. This financial closure enables us to accelerate the project and signifies the commitment of the Adani Group to mobilise the required resources and complete the project within the set timelines,” Prakash said.

KCL will be part of the materials, metals and mining vertical of the Adani group. 

SBI Capital Markets acted as the financial advisor and Desai & Diwanji Advocates acted as the lenders’ legal counsel. Saraf and Partners Law Offices acted as the legal adviser to KCL.

The Adani group of companies' combined gross debt touched Rs 2.2 trillion at the end of March 2022, up 42% from Rs 1.57 trillion a year ago, according to data from Capitaline. The group has expanded exponentially in the last few years.

Incorporated on 24 March 2021, KCL will undertake copper business-related activities such as the manufacture of copper cathodes and copper rods and associated products. 

Adani Enterprises Ltd (AEL) is the incubation arm of Adani group. The companies incubated in AEL are Adani Ports & SEZ Ltd, Adani Transmission Ltd, Adani Power Ltd, Adani Green Energy Ltd, Adani Total Gas Ltd and Adani Wilmar Ltd.

The Adani group of companies' combined gross debt touched Rs 2.22 trillion at the end of March 2022, up 42% from Rs 1.57 trillion a year ago, according to data from Capitaline. The group has expanded exponentially in the last few years.