State-run gas utility GAIL (India) Ltd has proposed to assume the debt of about ₹4,000 crore of Konkan LNG Pvt. Ltd in lieu of receiving the lenders’ stake in the company for free, said two bankers aware of the discussions.
The talks are at a nascent stage since the proposal requires an independent valuation of the stakes held by the lenders in Konkan LNG, said the first person cited above.
“GAIL has said that it will take over the entire debt of Konkan LNG at a 15-20% discount on the total outstanding, but our equity in the plant should be transferred for free,” the banker said, requesting anonymity.
