GAIL secures $100 mn bank loan
GAIL (India) has tied up a five-year term loan of $100 million from Bank of Tokyo - Mitsubishi UFJ. This loan agreement is first in the series of three tie-ups that GAIL plans to enter into for a total ECB of $300 million.
The loan funds would be used to partly fund the ongoing expansion/new projects of GAIL of around $9 billion. GAIL is currently implementing projects to lay 5,500 km pipeline at an estimated cost of Rs 25,000 crore (approximately $5 billion). When completed, the capacity of GAIL pipelines would increase to over 300 mscmd from the present 175 mscmd. GAIL is also doubling the petrochemical capacity of its plant at Pata from 4,46,000 tonne per annum (tpa) at present to 9,00,000 tpa by 2014.