Coal India (CIL) has disclosed details regarding a Sponsor Support Undertaking (SSU) executed by promoters of Talcher Fertilizer Limited (TFL), including CIL. This SSU is a pre-requisite for the disbursement of a ₹12,250 Crore Rupee Term Loan Facility to TFL by its lenders. CIL clarifies it has no direct interest in the loan transaction beyond its role as a TFL promoter. CIL is not the guarantor of the facility.
Loan Support for Fertilizer Plant Revival
Talcher Fertilizer Limited (TFL), a joint venture company involving Coal India Ltd. (CIL), is undertaking the revival of FCIL’s Fertilizer unit in Talcher, Odisha. This revival project involves setting up a Coal Gasification based fertilizer plant.
Details of Support Undertaking
CIL, as part of the promoter group of TFL, has participated in a Sponsor Support Undertaking (SSU). The SSU is a requirement for TFL to receive a Rupee Term Loan Facility amounting to ₹12,250 Crores from its lenders.
CIL clarifies that its involvement is limited to the SSU as a promoter and that it does not have any other direct interest in this transaction. The announcement emphasizes that CIL is not acting as a guarantor for the ₹12,250 Crore loan facility.
Financial Impact
According to the disclosure, this arrangement has no direct financial implication for Coal India (CIL).
About Talcher Fertilizer Limited
Talcher Fertilizer Limited (TFL) was incorporated on November 13, 2015, as a joint venture. The other companies involved are GAIL (India) Ltd., Rashtriya Chemicals & Fertilizers Ltd. (RCF) and Fertilizer Corporation of India Limited (FCIL).
Source: BSE
