New Delhi, July 4 (PTI): Lakshmi N. Mittal and his partner, Hindustan Petroleum Corp Ltd (HPCL), will arrange finances for the Rs 18,919-crore Bhatinda refinery project this month. They want to complete the project by 2010-11.

Mittal Energy Investments Pte Ltd, a subsidiary of Mittal Investments, has parked $110 million in an escrow account as a guarantee for its 49 per cent stake in the 9-million-tonne refinery project.

“The project is being financed in a debt-equity ratio of 1.5:1 ... While equity is not a problem, we are in discussion with a State Bank of India-led consortium for the Rs 10,733-crore debt,” HPCL chairman and managing director Arun Balakrishnan said.

HPCL will also hold a 49 per cent stake in the project while Indian financial institutions will hold 2 per cent.

Balakrishnan said Guru Gobind Singh Refinery Ltd might also resort to external commercial borrowing to meet the debt requirement as the difference in interest rates between overseas and domestic borrowings was 3.5-4 per cent.

“As Mittal Energy is issued shares of the refinery, money from the escrow account will flow into the company,” he said.