OIL VADINAR KANDLA Ltd.

Presented by – Group 5
 OIL IOC RIL EOL Others
(26%) (26%) (13%) (13%) (22%)

Oil Marketing Co Off Taker

(50%)
Equity (25%) Users
ICICI
Sponsor
SBI
OVKL
IL&FS (50%)
RIL Debt (75%)
EOL 3rd
2nd
1st
Operational
Expenditure Escrow Account
Risks of the project
 Project Completion Risk
 CostOverrun Risk
 Time of Completion
 Market Risk
 Tariff
charge
 Capacity Utilization (Demand Risk)
 Regulatory Risk
 Credit Risk
 Exit Option
 Risk Mitigation Measures

 Project Completion Risk

 To mitigate cost overrun risk, ask for extra cost from
the promoters (Contingent Equity)
 To mitigate time overrun, make engineering company
to be responsible for time overrun costs
 Exit Option Risk
 Securitization of debt for certain cash flow
 Market Risk
 Compulsory take or pay contract
 Regulatory Risk
 As the deregulation kicks in, there can be free pricing
options for marketing companies
 Ascertain the role of govt. regulator
 Credit Risk & Force Majeure Risk
 Structure insurance
Thank You