New Delhi, Mar 13 (UNI) Meghmani Organics Ltd today said IFC will pick up 25 per cent stake for Rs 46.1 crore in its subsidiary company, Meghmani Finechem Ltd's (MFLs), proposed Rs 554.2 crores chlora plant project in Dahej, Gujarat.
IFC, a member of the World Bank Group, has been roped in as a strategic investor in the project which will employ environmentally friendly and energy efficient membrane cell technology, a statement said.
MFL is the first project for which IFC has gone beyond its normal investment norm of 20 per cent to close the financial gap.
Besides equity investment IFC will also provided Rs 80 crores as a long term loan and will have the right to subscribe to warrants of upto Rs 5 crores.
The commercial production of the first phase is targeted to commence by December 2008 / January 2009. Phase 2 will comprise the production of derivative products with higher value-addition.
First announced in October last year, the project involves the development of a large scale caustic chlorine complex that will produce caustic soda lye / flakes, chlorine gas and hydrogen gas in the first phase.
Subsequent phases will involve downstream / derivative projects based on caustic / chlorine.
For the project, MOL has acquired 161-acre (about 650,000 sq m) site in Dahej.
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