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PFC sanctions biggest-ever Rs 10,000 cr credit-line to NTPC

PFC sanctions biggest-ever Rs 10,000 cr credit-line to NTPC
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First Published: Thu, Jun 19 2008. 02 39 PM IST
Updated: Thu, Jun 19 2008. 02 39 PM IST
PTI
New Delhi: In a biggest ever credit-line, Power Finance Corp has sanctioned a loan of Rs 10,000 crore to country’s largest power producer NTPC for various projects to be completed in the current 11th Five Year plan.
According to officials the MoU towards this is likely to be signed in the next one week between two PSUs and the money would be disbursed in installments.
NTPC, which is nearly 30,000 MW company, seeks to generate 50,000 MW by 2012. It has lined up over Rs13,200 crore capital expenditure in the current financial year and the loans from PFC would be partly utilised for the projects being undertaken in 2008-09. It reported capex of Rs8,621 crore during 2007-08.
The power producer would double coal imports during the current fiscal to five million tons, while its overall consumption of the fuel during 2008-09 is expected to surge to 140 million tonnes. NTPC consumed about 124 million tonnes of coal during 2007-08.
It has tied up for loans worth Rs21,809 crore for capacity expansion plans from various domestic banks and other financial institutions. The cumulative domestic borrowing up to March 31, 2008 was Rs20,739 crore, including Rs4,000 crore bonds placed with LIC.
“This tranche of loan of Rs10,000 crore would be utilised by NTPC for its projects to be commissioned in the next 4-5 years,” PFC officials said.
When contacted, NTPC officials declined to comment saying discussion with various financial institutions keep going on for tying up finances.
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First Published: Thu, Jun 19 2008. 02 39 PM IST