GAIL, SBI ink Rs 2K crore loan agreement
New Delhi: State-owned gas utility GAIL India on Tuesday said it has borrowed Rs 2,000 crore loan from State Bank of India (SBI) to meet its general capital expenditure requirement.
The loan is for a 15-year tenure, the company said in a statement without saying what interest rate it would pay on the borrowing.
GAIL said it signed with SBI "a rupee term loan agreement of Rs 2,000 crore having a door-to-door tenure of 15 years. The purpose of the loan is for general capital expenditure of GAIL, mainly in the gas pipeline projects, in the forthcoming years." The pact was signed in the presence of GAIL Director (Finance) Subir Purkayastha and SBI General Manager S K Pradhan. "During their discussions, GAIL and SBI officials said that the loan agreement is an important milestone in the mutually beneficial relationship that the two organisations share in their path of growth," the statement added.