Board approves corporate guarantee of ₹117 crore for subsidiary's 35 MW solar project loan
Board approved a corporate guarantee for wholly owned subsidiary MCFL Energy Projects Pvt Ltd.
By ScoutQuest · · 1 min read
- Corporate Guarantee Amount
- up to ₹117 crore
- Solar Power Project Capacity
- 35 MW
- Project Location
- Madhya Pradesh
- Lender
- Punjab National Bank (via IDBI Trusteeship as security trustee)
- Subsidiary
- MCFL Energy Projects Pvt Ltd
What was approved
On November 3, 2026, the Board approved furnishing a corporate guarantee for loans to be taken by MCFL Energy Projects Private Limited, an unlisted wholly owned subsidiary.
- Guarantee in favour of IDBI Trusteeship Services Limited, acting as Security Trustee for Punjab National Bank.
- Secures a term loan of up to ₹117 crore, plus interest, costs, charges and other dues.
- Terms are to be mutually agreed; the guarantee is described as proposed to be issued.
Purpose of the loan
The subsidiary plans a 35 MW solar power project in Madhya Pradesh.
What it means for the company
- A corporate guarantee means the parent promises to repay the lender if the subsidiary cannot.
- The company will treat it as a contingent liability — an obligation that arises only if the subsidiary defaults.
- The company states there is presently no impact of this guarantee.
- Promoter/promoter group/group companies have no interest in the transaction.
Perception
This signals continued backing of the group's solar energy venture. The parent takes on potential risk if the project's loan is not serviced.
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More numbers
- Term loan guaranteed (up to)₹117 crore
- Solar project capacity35 MW
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