GAIL signs support undertaking for Talcher fertilizer project

GAIL (India) Limited has executed a Sponsor Support Undertaking (SSU) for a Rupee Term Loan Facility of approximately Rs. 12,250 Crores for Talcher Fertilizer Limited (TFL). TFL, incorporated on November 13, 2015, is a Joint Venture Company involving GAIL, Coal India Ltd. (CIL), Rashtriya Chemicals & Fertilizers Ltd. (RCF), and Fertilizer Corporation of India Limited (FCIL). It was established to revive FCIL's fertilizer unit through a Coal Gasification-based plant in Talcher.

GAIL confirmed it has no direct financial interest in this transaction beyond its role as a promoter in TFL, and the transaction is conducted at "arm's length." GAIL is not acting as the guarantor for the facility.

The SSU, executed by TFL's promoters, including GAIL, facilitates the disbursement of funds from lenders. GAIL reiterated that there is no financial implication for the company resulting from this guarantee or indemnity. This disclosure aligns with Regulation 30 of SEBI LODR Regulations, 2015.