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| BHSIL |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 25554 |
| Company name | Bajaj Hindusthan Sugar & Industries Limited |
| Country | India |
| Sector | Food & Beverages |
| Environmental category | B |
| Department | Agribusiness |
| Status | Active |
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| Date SPI disclosed | January 16, 2007 |
| Projected board date | February 16, 2007 |
| Previous Events | Invested: April 16, 2007
Signed: March 7, 2007
Approved: February 28, 2007 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
Bajaj Hindusthan Sugar And Industries Limited (the company or BHSIL) is a publicly listed company that produces and sells sugar and industrial alcohol/ethanol. BHSIL is undertaking to:
- expand a brown-field sugar plant from 3,200 to 6,000 tons crushed per day (TCD),
- construct three green-field sugar plants with combined capacity of 34,000 TCD; and
- build a distillery of 160 kiloliters per day (the project).
The nearest community habitations are 0.5 to 1.5 km from the proposed project sites, the plants are located in predominantly agricultural area and there are no environmentally sensitive areas in the vicinity the proposed plant sites and the existing plant. The project aims to achieve economies of scale and enhance competitiveness. |
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| Project sponsor and major shareholders of project company |
| The project sponsor is Bajaj Hindusthan Limited, a publicly listed company and one of the largest sugar and industrial alcohol/ethanol producers in India. It holds 51.26% of the company’s shares as on 31st December 2006, with the balance held by the general public. |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at $260 million. The proposed IFC investment includes a $45 million debt and equity package for IFC’s own account and $90 million B loan from participating banks. |
| Location of project and description of site |
The project is located in the eastern Uttar Pradesh, specifically in:
- Pratappur, Deoria District (brown-field);
- Kunderki, Gonda District (green-field);
- Utraula, Balrampur District (green-field); and
- Rudauli, Basti District (green-field).
All sites are located in rural areas and have access to major roads and railways. |
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| Anticipated development impact of the project |
The project is expected to have the following development impacts:
- Purchasing raw materials from and supporting a large number of small farmers;
- Reducing poverty in one of the poorest regions in India;
- Contributing to rural development by boosting local economy and community outreach..
- Enhancing the productivity and competitiveness of the private sector in rural areas; and
- Creating new employment within the Company and along the supply chain; |
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| IFC's expected development contribution |
IFC’s role includes
- providing long-term loans not easily available in the local market;
- mobilizing capital from other sources; and
- guiding the company in implementing environmental and social policies and guidelines of the host country and IFC. |
| Environmental and social issues - Category B |
| This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of the project consisted of appraising technical, environmental, health, safety and social information submitted by the company, meeting with the management of the company, and visiting the project sites. |
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| For inquiries about the project, contact: |
Mr. Rakesh Bhartia, President
Bajaj Hindusthan Limited
Bajaj Bhawan, Jamnalal Bajaj Marg,
226, Nariman Point,
Mumbai – 400 021. INDIA
Telephone: +91 22 2202 3626
Fax: + 91 22 2202 2238 |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: +1 202 473 3800
Fax: +1 202 974 4384
E Mail: Webmaster |
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