Petronet LNG Limited has secured a ₹12,000 crore loan to support its Petrochemicals Project. The loan agreement involves State Bank of India and Bank of Baroda. Funds will be directed towards a 750 KTPA Propane Dehydrogenation and 500 KTPA Polypropylene project at Dahej, Gujarat. The project includes propane and ethane handling facilities. This investment will facilitate increased production capacity and strengthen Petronet LNG’s market position.
Loan Agreement Execution
Petronet LNG Limited has finalized a loan agreement to borrow a secured Rupee Term Loan aggregating to ₹12,000 crores. The agreement was signed on December 10, 2025.
Funding Details
The loan consists of ₹6,000 crore each from State Bank of India (SBI) and Bank of Baroda. SBI is leading the consortium. The funds are specifically designated for the company’s Petrochemicals Project.
Project Overview
The loan will finance the Petrochemicals Project, which includes a 750 KTPA Propane Dehydrogenation (PDH) unit and a 500 KTPA Polypropylene (PP) unit. These facilities will be located in Dahej, Gujarat. The project also includes necessary infrastructure for handling propane and ethane.
Security Details
The loan is secured via a first pari-passu charge on all movable properties and assets, including plant and machinery related to the PDH-PP Project. It also includes a first pari-passu charge by way of mortgage on all PDH-PP Project related immovable properties. A second pari-passu charge exists on existing movable fixed assets, released upon commissioning of the PDH-PP Project. The security is shared amongst the Lenders and Bond Holders.
Source: BSE
