SBI and other PSU banks provide the Adani Group a Rs 6,071 billion commitment for copper business

“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 1 million tonnes per annum in two phases,” the company said in a statement.

Adani Group, a ports-to-energy conglomerate, entered the copper manufacturing industry by securing financing from public sector lenders for a 1 million tonnes per year operation at Mundra in Gujarat.

“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 1 million tonnes per annum in two phases,” the company said in a statement.

KCL has completed the financial aspects of the greenfield copper refinery project in Mundra, Gujarat, for the phase-1 capacity of 0.5 million tonnes. It has executed “financing documents with the consortium of banks led by State Bank of India (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 statement said.

For the whole debt demand of Rs 6,071 crore for Phase-1 of the KCL Project, the consortium of banks has approved and signed an agreement. The project, according to Vinay Prakash, Director of Adani Enterprises Ltd., has the necessary technologies in place, and construction work at the site is moving along nicely. Production is expected to start in the first half of CY 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 digitilization. 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,” he said. KCL will be part of the materials, metals and mining vertical of the Adani group.

The lenders’ legal assistance was provided by Desai & Diwanji Advocates, while their financial advisor was SBI Capital Markets Ltd. KCL received legal advice from Saraf and Partners Law Offices. KCL was founded on March 24, 2021, with the intention of engaging in copper-related operations like the production of copper cathodes, copper rods, and related goods.

The Adani Group’s incubator is called Adani Enterprises Limited (AEL). The following companies were incubated under AEL: Adani Transmission Limited, Adani Power Limited, Adani Green Energy Limited, Adani Total Gas Limited, and Adani Wilmar Limited.