Russia's Rosneft-backed Nayara Energy said it has achieved financial closure for phase-one expansion plans for the petrochemical business following the tie-up of Rs.4,016 crore funds from banks.

The firm will build a 450-kilo tonnes per year polypropylene unit at its 20 million tonnes per year refinery in Vadinar, Gujarat.

"The firm inked a finance arrangement for a project term loan of Rs 4,016 crore with a consortium of banks led by State Bank of India," it added.

It already has the requisite acreage for the proposed project. Nayara Energy originally unveiled its petrochemical expansion ambitions at the 2019 Vibrant Gujarat Summit.

"The lending facility has a duration of nearly 15 years," the statement added. The project would be financed by a mix of debt and equity, it stated without elaborating.

"The financial completion brings to fruition our expansion goals to become one of the largest integrated energy and petrochemical complexes in the country," stated Nayara CEO Alois Virag.

Polypropylene demand is likely to expand at a 10% annual rate, he added.

It's projected to be finished in 2023, he added. "We are dedicated to making India a world-class petrochemicals center."

Its solid parentage and leadership have earned the company's faith and confidence. Anup Vikal, CFO, Nayara Energy.

"The project will improve Nayara Energy's overall financial performance over the next few years in line with the shareholders' asset development plan," he added.

In August 2017, Rosneft purchased Essar Oil and rebranded it Nayara Energy.

Owner and operator of India's second-largest single-site refinery It also owns and runs over 6,000 petrol stations across India, making it the fastest expanding private energy supplier.