GEECL gets $25m debt from State Bank

Calcutta, Aug. 20: Great Eastern Energy Corporation Ltd (GEECL) has received an approval for a $25-million or Rs 100-crore debt from the State Bank of India.

The loan will help the company start the next phase of exploration of coal-bed methane (CBM) in Bengal.

The Yogendra K. Modi-controlled company is the first in the country to start commercial production of CBM near Asansol.

It produces 1.3 million standard cubic feet gas per day (mmscfd) for Shree Balaji Glass Manufacturing Pvt Ltd.

It expects to reach a steady production level of 35 mmscfd in the next two years. After the end of the second phase, the capacity is expected to reach 100 mmscfd and remain so for the next 20 years.

The company is looking to raise Rs 300-350 crore of debt from various institutions to complete the first phase of development.

The SBI’s credit will be followed by commitments from the bank’s subsidiaries or other consortium members in the near future.

Y.K. Modi, chairman and CEO of GEECL, said: “Our company has made significant progress in the past few months and the provisions of this initial debt facility is also another strong vindication of Great Eastern’s commitment towards this sector in India.”

Last week, the production from nine wells increased to 1.3 mmscfd. This was because of measures taken by the company to de-water wells. The company expects to de-water nine more wells to increase capacity.

GEECL is also setting up a gas gathering station. The delivery of pipeline began last month. GEECL is also in talks with IOC for a city gas distribution project covering six cities of the state.

For more information, contact Mr. Prashant Modi. He is the President and COO of GEECL or visit his official website at http://www.prashantmodi.com/