Gail India intends to borrow up to Rs 7,000 crore in FY24 to pay for the Rs 10,000 crore planned capital expenditures for this fiscal. The chairman and managing director of the state-owned corporation, SK Gupta, stated, "For this fiscal, we plan to spend Rs 10,000 crore." In spite of FY23's poor performance in terms of internal resource creation, he said, it invested Rs 9,100 crore, or 15% more than had been planned.
He radiated assurance that FY24 will be strong in terms of internal resource generation and that there would be no issue with continuing the capex. He continued, "We intend to borrow somewhere between Rs 5-7,000 crore. RK Jain, the director of finance for the corporation, stated that given the current state of international finance, home markets will be used for borrowing rather than
international ones. According to him, a quarter of the borrowings will be in bonds and the remaining three will be from banks in accordance with the Sebi order. The new bank borrowings would have a period of more than five years, and the company now has a total long-term debt of Rs 9,800 crore. Currently, he continued, it is trying to raise Rs 1,500 crore in the domestic market. Gail has reportedly filed a lawsuit against Russian energy giant Gazprom for failing to provide liquefied natural gas in the wake of the challenges brought on by Russia's invasion of Ukraine, according to Gupta. We have filed an arbitration request with the London court in order to pursue specific performance against them and recover damages, according to Gupta.
Gupta stated that Gail has recommended the firm's representatives for the arbitration, although its supplier has not yet named one, without disclosing the precise amount the business is claiming. He claimed that although normal supplies have been in place for the past two months, Gail is paying more than she would on the spot market since the contract specifies a price that is payable over an average of nine months.
Gupta added that the business will consider all options, including tie-ups, before making a significant attempt to enter the market for solar energy components. Additionally, it is confident in starting up a green hydrogen production in 2023. Although the ideas are still in the conceptual stage, the corporation is thinking about investing in the ethane cracker. Gupta claimed that because oil and gas businesses can access the necessary funding from the markets, it will not be considering pipeline monetisation.
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