Joint Venture19 Oct 2025, 05:16 am
Coal India Ltd Executes Sponsor Support Undertaking for Talcher Fertilizer Limited
AI Summary
Coal India Ltd (CIL) has executed a Sponsor Support Undertaking (SSU) for Talcher Fertilizer Limited (TFL), a Joint Venture Company of GAIL (India) Ltd., CIL, Rashtriya Chemicals & Fertilizers Ltd. (RCF), and Fertilizer Corporation of India Limited (FCIL). The SSU is a pre-requisite for the disbursement of a Rupee Term Loan Facility of Rs. 12,250 Crores to TFL by its lenders. Despite being a promoter of TFL, CIL does not have any interest in this transaction except as a pre-requisite for the loan disbursement. The transaction is done at 'arm’s length' and there is no financial implication for CIL.
Key Highlights
- Coal India Ltd has executed a Sponsor Support Undertaking for Talcher Fertilizer Limited
- Talcher Fertilizer Limited is a Joint Venture Company of GAIL (India) Ltd., Coal India Ltd, Rashtriya Chemicals & Fertilizers Ltd, and Fertilizer Corporation of India Limited
- The Sponsor Support Undertaking is a pre-requisite for the disbursement of a Rupee Term Loan Facility of Rs. 12,250 Crores to TFL by its lenders
- Coal India Ltd does not have any interest in this transaction except as a pre-requisite for the loan disbursement
- The transaction is done at 'arm’s length' and there is no financial implication for Coal India Ltd