PMPower Mech Projects539302Debt issuance notice

Corporate guarantee of Rs. 469 Crores issued for subsidiary Kalyaneswari Tasra Mining

Corporate Guarantee of not exceeding Rs. 469 Crores issued for subsidiary Kalyaneswari Tasra Mining Private Limited (KTMPL).

By ScoutQuest · Thu 15 Oct 2026, 12:16 PM IST · 2 min read

Corporate Guarantee Amount

not exceeding Rs. 469 Crores

Underlying Bank Loans

Rs. 175 Crores from RBL Bank and Rs. 294 Crores from IDFC First Bank

Guarantee Release Date

September 1, 2035

What was announced

• The company has issued a Corporate Guarantee on behalf of its subsidiary, Kalyaneswari Tasra Mining Private Limited (KTMPL).
• The guarantee is for an amount not exceeding Rs. 469 Crores.
• It has been issued in favour of CTL Trusteeship Limited, which is acting as the Security Trustee.

Why the guarantee was given

• The guarantee secures the financing facilities availed by KTMPL towards project capex — a Coal Handling Plant, Railway siding, and R&R Colony Construction.
• The underlying credit facilities are:
• RBL Bank Limited: Rs. 175 Crores
• IDFC First Bank Limited: Rs. 294 Crores

What the company says about the impact

• The issuance of the Corporate Guarantee does not have any immediate impact on the company's financial position.
• However, in the event that KTMPL is unable to meet its repayment obligations to the lender, the company may be required to honour the guarantee.
• On that basis, the company states that the Corporate Guarantee constitutes a contingent liability for the company.

Other terms stated

• As per the terms, the Corporate Guarantee extended by the sponsor shall be released by September 1, 2035.
• The promoter, promoter group and group companies of the company have no interest in this transaction, and the transaction has been undertaken entirely on an arm's length basis.

How to read this

• A corporate guarantee is a promise by the parent company to repay a subsidiary's loan if the subsidiary cannot. Until such a default happens, it is a contingent liability — an obligation that may or may not arise.
• The size of the guarantee (Rs. 469 Crores, not exceeding) and the two lender facilities give a sense of the exposure the company has taken on. The subsidiary's project is funded by loans from RBL Bank and IDFC First Bank, supported by this guarantee.
• The stated release date of September 1, 2035 gives a timeline within which the guarantee is expected to end.

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