Utkal Alumina International, a wholly-owned subsidiary of Hindalco Industries, proposes to set up a 1.5 million tpa alumina refinery in Rayagada district of Orissa. The project is expandable to three million tpa at relatively lower incremental capital cost.
The project will feed the alumina requirements of the Mahan and the Aditya smelters presently under construction.
Hindalco has achieved the financial closure of Utkal with the signing of a common loan agreement of Rs 4,906 crore on 28 July 2010. This constitutes the entire debt requirement of the project. The loan documents were signed by a group of 28 banks. The syndication was led by IDBI Bank with SBI Capital and The Royal Bank of Scotland NV as joint arrangers and book runners.