Rail Vikas Nigam Limited (RVNL) has disclosed that it has extended a guarantee of ₹282.5 crore to Kinet Railway Solutions Limited, a joint venture company in which RVNL holds a 25% equity stake. The guarantee is intended to facilitate financial assistance from Punjab National Bank to Kinet Railway Solutions Limited.
Key Details of the Guarantee:
- Parties Involved:
- Borrower: Kinet Railway Solutions Limited
- Guarantor: Rail Vikas Nigam Limited (RVNL)
- Lender: Punjab National Bank (PNB)
- Guaranteed Amount:
- RVNL has provided a guarantee for a maximum liability of ₹282.5 crore, covering secured obligations, unpaid interest, charges, and other dues.
- Terms of the Guarantee:
- RVNL will be obligated to pay the guaranteed amount to the lender within seven business days of receiving a demand certificate in case of default by Kinet Railway Solutions Limited.
- The transaction has been carried out on an arm’s-length basis.
- Impact:
- Currently, there is no financial impact on RVNL unless the borrower defaults on its obligations.
This financial support demonstrates RVNL’s commitment to facilitating infrastructure and development projects through its joint ventures. The guarantee is expected to bolster Kinet Railway Solutions Limited’s financial position and support its operations.
