OCL India to raise $ 40 mn from IFC for its cement plant

The proposed fund raising is to support the company's $102 million investment plan for a 1.35 million tonnes per annum capacity cement plant at Medinipur, West Bengal. Group's OCL India is planning to raise around $40 million from International Finance Corporation (IFC) for its cement plant at Medinipur in West Bengal. The proposed fund raising is to support the OCL's $102 million investment plan for a 1.35 million tonne per annum (mtpa) capacity cement plant. The project will be located at village Kulapachuria, Salboni sub-division. As a part of developing Godapaisal Industrial Park, the West Bengal Industrial Development Corporation has acquired and leased 154.43 acres of land for the project to OCL as the anchor investor. The investment cost for the project is estimated at $102 million and IFC is evaluating an A-Loan of $40 million to part-finance the project. The balance funding requirement will be met through rupee debt and internal accruals, said the corporation. The project is expected to take 27 months to construct and thus be operational by January 2014. It will contribute around $7 million per annum of tax revenues to the exchequer, according to the OCL's project disclosure.