India’s state-owned Power Finance Corporation (PFC) has opted not to provide a loan to the Shapoorji Pallonji Group, putting the conglomerate’s plans to refinance approximately $2.4 billion in debt at risk. Chairman and Managing Director Parminder Chopra informed that PFC had completed due diligence and determined the sector was new for the government-backed lender, leading to a decision not to proceed with the loan.

PFC’s board ultimately chose to withhold the loan amount of around Rs 200 billion.

The Shapoorji Pallonji Group, led by Indian billionaire Shapoor Mistry, had previously approached Power Finance for the loan, intending to use the funds mainly to refinance an existing credit facility.