Tata Steel has closed India’s largest ever project finance facility.

The company secured a 10-year US$3.94mn club deal with 21 banks to build a new steel plant, the Kalinganagar project.

The State Bank of India (SBI) is understood to be the lead arranger, with private banks Axis, HDFC and ICICI joining public lenders such as Bank of Baroda, Bank of India, Canara Bank, IDBI, Indian Bank and Indian Overseas Bank in the syndicate.

The loan was made in local currency (Rp220bn) and is the largest rupee loan of 2013 and the largest single project finance in Indian history, local media reports say.

Kalinganagar is expected to produce 6 million tonnes of steel a year.