DCM Shriram Limited Bharuch II

completed

DCM Shriram Limited (“Company”) is an existing IFC client in India with two main business lines: (i) agribusiness (fertilizer, seeds, sugar and trading of agricultural inputs) and (ii) chemicals (chlor-alkali, chlorine and polyvinyl chloride/ PVC). DCM Shriram is embarking on an expansion of its chlor-alkali facility located in Bharuch, Gujarat (the “Project”). This expansion would include: i) Expansion of the chlor-alkali plant in Bharuch to a capacity of 915 tons per day (TPD) from the current capacity of 450 TPD; ii) Coal based captive power plant of 55MW, as approved by the Board in October 2014. IFC will provide corporate loan to the Company, and the funding is solely for chlor-alkali expansion. The company’s Bharuch site includes two plants, a 450 TPD chlor-alkali plant and a 55 MW coal based captive power plant to provide steam as well as electricity for the chlor-alkali plant. The new zero-gap technology will be adopted for the chlor-alkali expansion. Bharuch site is 47 ha and located in a 1,700 ha chemical industry park, Jhagadia Industry Estate, developed by Gujarat State in 1994. Both chlor-alkali and power expansions will be built inside existing plant site, which is surrounded by other chemical industries. The nearest community is more than 1 km away. The construction started in mid-2015 and plans for completion in late 2016. No EPC constructor is used and DCM Shriram manages the construction by its own team. IFC’s ongoing supervision of the existing investment in the company indicates general compliance with IFC’s environmental and social requirements and the associated overall performance is considered satisfactory. The Environmental and Social Review Summary for the previous IFC investment in Bharuch site can be read at:ifcextapps.ifc.org/ifcext/spiwebsite1.nsf/78e3b305216fcdba85257a8b0075079d/3a982387c57e6c73852576ba000e2c1b?opendocument