NTPC seeks nod for raising $25 billion in overseas bonds
26 Aug 2008
Mumbai: National Thermal Power Corporation (NTPC) has sought government help to raise Euro Convertible Bonds (ECBs) worth $25 billion (Rs105,000 crore) to finance its capacity expansion plans.
NTPC, the country's largest power utility, has moved the power ministry with plans to raise its generating capacity to 50,000 MW by 2012 and to 75,000 MW by 2017.
NTPC has targeted investment of Rs160,000 crore in the 11th plan. With a debt equity ratio of 70:30, the company would have to raise around Rs160,000 crore during the plan period.
The ECB will have a Rs60,300 crore foreign currency element and Rs45,200 crore rupee portion, it said.
NTPC wants the government to get Reserve Bank permission for raising money in foreign as well as domestic currency without any ceiling.
''Government of India should recommend to the Reserve Bank of India for granting external commercial borrowings (ECBs) to meet both the rupee as well as foreign currency expenditure for subject packages," chairman and managing director R S Sharma wrote in a letter to the power ministry.
Under the existing rules, companies can raise up to $500 million per annum through ECBs under the automatic route for import of equipments and an additional $250 million with the approval of the RBI.
