GAIL (India) Limited has executed a Sponsor Support Undertaking (SSU) for Talcher Fertilizer Limited (TFL), a joint venture. This SSU is a prerequisite for the disbursement of a ₹12,250 Crore Rupee Term Loan Facility from lenders to TFL. GAIL, along with other promoters, supports TFL’s revival of a fertilizer unit via coal gasification.
Sponsor Support for Fertilizer Project
GAIL (India) Limited is extending support to Talcher Fertilizer Limited (TFL) through a Sponsor Support Undertaking (SSU). TFL, incorporated on November 13, 2015, is a joint venture involving GAIL, Coal India Ltd. (CIL), Rashtriya Chemicals & Fertilizers Ltd. (RCF), and Fertilizer Corporation of India Limited (FCIL).
Details of the Undertaking
The SSU is a prerequisite for the disbursement of a Rupee Term Loan Facility of approximately ₹12,250 Crores to TFL by its lenders. This financial arrangement enables the revival of FCIL’s fertilizer unit at Talcher through the establishment of a coal gasification-based fertilizer plant.
GAIL’s Role and Interest
GAIL, as a promoter of TFL, has executed the SSU as required by the lenders. While GAIL has no direct interest in the transaction beyond its role as a promoter, the transaction is conducted at arm’s length. GAIL is not the guarantor of the facility. There is no financial implication for GAIL.
Source: BSE
