A consortium of 28 banks and financial institutions have lent Rs 9,896 crore to Hindalco Industries for its aluminium project in Odisha.

   The Aditya Birla Group firm borrowed the amount for 12.5 years at an interest rate of 11.25 per cent a year. The Rs 13,195-crore Aditya Aluminium smelter project is being funded in a debt-equity ratio of 75:25.

   The company will set up a 3.59 lakh tonne a year aluminium smelter along with a 900-mw captive power plant at Lapanga in Odisha. The equity part for the project has already been financed by internal accruals and QIP (qualified institutional placement) issuance of $600 million (about Rs 3,300 crore) made in November 2009.

   The company is also setting up an alumina refinery with integrated bauxite mines at Koraput in Odisha, which is expected to be completed by 2014. The company is also implementing two other greenfield projects – Utkal Alumina at Rayagada in Odisha and Mahan Aluminium in Madhya Pradesh.

   The company has achieved financial closure at a time when the government is reviewing a series of coal block allotments made to various metal companies, including that of Hindalco.

   Chief Financial Officer Praveen Maheshwari said that the company has chosen to stay on its course and deliver on its long-term strategic objective at a time when most companies are shying away from committing capex.