Inox Wind (IWL) has signed a consortium agreement with a group of banks led by ICICI Bank for limits of
Rs 2,200 crore. This limit is likely to be enhanced further to
Rs 2,400 crore as per the working capital assessment done by the lead bank (ICICI Bank). The limits
extended are largely non-fund based [bank guarantees (BGs) and letter of credits (LCs)]. The limits have been sanctioned on the financial strength of IWL's balance sheet and without the requirement
of any corporate guarantees or any other support from Gujarat Fluorochemicals (GFL).
IWL's recent fund raises as well as its operational ramp up have led to its balance sheet becoming net cash positive. With this arrangement in place, any prior corporate guarantee or any other such support extended
to IWL by GFL stands vacated / to be vacated in the near future.