The Hindu Business Line : NTPC plans to raise Rs 1 lakh cr to expand capacity

Advertisement

Mumbai Feb. 16 National Thermal Power Corporation (NTPC), the country's largest power producer, plans to raise Rs 1,00,000 crore in debt to finance its plans to increase its power-generation capacity from 27,000 MW to 51,000 MW over the next five years, said Mr A.K. Kundu, Executive Director of NTPC.

Mr Kundu was speaking at a conference on power sector financing organised by Bombay Chamber of Commerce and Industry.

He said that all options would be open for raising the funds, which could include US pension funds under the US Private Placement Program. The total capital expenditure on these projects was Rs 1,60,000 crore, of which 30 per cent will be equity and the remaining debt. "We will be raising money based on our balance sheet and not seeking government guarantee,'' he said.

Currently NTPC has 14 coal-fired power plants and seven gas-fired plants located across the country.

Power grid

Also speaking on the occasion, Dr R.P. Singh, Chairman and Managing Director, Power Grid Corporation of India Ltd (PGCIL), said that the due diligence for its public issue was under way and it was likely to hit the market by April or May.

Dr Singh said that by March, transmission projects worth Rs 4,300 crore would be completed by the PGCIL. It would include Rs 2,000-crore worth projects to connect Northern grid with Eastern grid, which would help connect Patna in Bihar with Balia in Uttar Pradesh; a Rs 800-crore transmission project to connect Agra, Gwalior and Bina (Madhya Pradesh) and a Rs 1,500-crore project to evacuate power from NTPC's plant located at Sipat in Chhattisgarh, he said.