JSW Energy Arm To Provide Bank Guarantee For Rs 954 Crore Loan

JSW Energy Ltd. on Wednesday said one of its wholly-owned subsidiaries, JSW Energy (Barmer) Ltd., will provide a corporate guarantee on behalf of Barmer Lignite Mining Co. for availing a loan of up to Rs 954 crore.

Barmer Lignite Mining is a joint venture of JSW Energy (Barmer) Ltd and Rajasthan State Mines & Minerals Ltd. JSW Energy arm holds 51% stake in the JV.

JSW Energy (Barmer), which is a promoter of Barmer Lignite Mining, has issued a promoter undertaking to Bank of Baroda, which will provide the loan, an exchange filing said.

'JSWEBL will also be providing a corporate guarantee in favour of the bank in connection with the above loan,' the filing said.

The corporate guarantee shall be a contingent liability for JSWEBL, which is a wholly-owned material subsidiary of the company, it said.

At this point, there is no impact of the said promoter undertaking and the corporate guarantee on the company, it added.