Ntpc to raise up to Rs5,000 Crore via term loans
NEW DELHI : State-owned NTPC has issued a call for tenders to raise up to ₹5,000 crore through term loans to fund its capacity addition plans, including the takeover of renewable energy projects.
The company, in its Request for Proposals (RFP) for the tenders, stated, “Proceeds of the loan will be used for capital expenditures for the ongoing/new capacity addition program, including takeover of projects, renewable energy projects, coal mines and laundries, renovation and modernization program of various projects, loan refinancing and general corporate purposes, etc.”
NTPC defined ₹500 crore as the minimum loan amount offered by banks and financial institutions. Banks and other financial institutions can offer loans in multiples of ₹500 crore, according to the RFP document.
The deadline for submission of tenders is May 27 and tenders will be opened on the same day.
“You are requested to quote the lowest interest rate linked to the MCLR or linked to any other market determined external benchmark, clearly specifying the reset period which cannot be less than one month,” a he declared.
Noting that bids will be evaluated on the basis of the interest rate quoted, the document states that in the event of two bidders quoting the same rates, preference will be given to bidders quoting rates linked to a benchmark other than the Treasury bill. .
The development comes at a time when NTPC is eyeing growth in the thermal and renewable energy spaces.
Recently, the major power plant launched a tender for the purchase of 4.53 million tonnes (MT) of imported coal to be mixed with domestic dry fuel in thermal power plants. The switch to imports came at a time when the country is facing a situation of electricity shortage.
On the renewable energy front, the state-owned company plans to have a total renewable energy capacity of 35 gigawatts (GW) by 2027 and is expected to generate 10 billion units of green energy in 2022-23.
NTPC share on BSE closed at ₹148.60, Thursday, down ₹4.05 or 2.65% from its previous close.