GAIL (India), India's leading natural gas company, has tied up for a five-year term loan of $100 million from Bank of Tokyo - Mitsubishi UFJ. The 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 partially used for funding the ongoing expansion/new projects of GAIL, which is estimated to cost around $9 billion. The company has already taken a term loan of $150 million from Bank of Tokyo-Mitsubishi UFJ in June this year.
State-owned gas utility, recently, has bagged rights to lay a 1,550-km natural gas pipeline from Surat in Gujarat to Paradip in Orissa, connecting west to east coast by beating Gujarat State Petronet. The company bid an astonishingly low pipeline tariff of Rs 0.01 (one paisa) per million British thermal unit to bag the project.
