Coal India Ltd to Give Guarantee of ₹ 3160 Crores to Subsidiary CRAUL

Coal India Ltd (CIL) has approved the giving of guarantee to CIL Rajasthan Akshay Urja Limited (CRAUL), a subsidiary of CIL, for a debt of up to ₹ 3160 Crores for funding of CAPEX of CRAUL’s 875 MW Solar PV Plant. The guarantee is a 100% corporate guarantee. The potential liability of CIL in the event of default by CRAUL on its debt obligations is limited to the guaranteed amount. CRAUL is a Joint Venture Company of CIL and Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), a Rajasthan State Government Company. The transaction is at Arm’s Length considering the majority holding of CIL (74%).