BackNTPC invites bids for raising ₹5K crore through term loans
Proceeds of the loan shall be utilized towards capital expenditure for ongoing/new capacity addition program including takeover of projects, renewable energy projects, coal mining & washeries, renovation & modernization program of various projects, refinancing of loans and general corporate purposes etc,
PremiumNEW DELHI : State-run NTPC has invited bids for raising up to ₹5,000 crore through term loans to fund its capacity addition plans including takeover of renewable energy projects.
The company in its request for proposal (RFP) for the bids, said: “Proceeds of the loan shall be utilized towards capital expenditure for ongoing/new capacity addition program including takeover of projects, renewable energy projects, coal mining & washeries, renovation & modernization program of various projects, refinancing of loans and general corporate purposes etc."
NTPC has set ₹500 crore as the minimum amount of loan offered by banks and financial institutions. Banks and other financial institutions can offer loans in the multiples of ₹500 crore, the RFP document said.
The last date for the submission of the bids is May 27 and the bids would be opened on the same day.
“You are requested to quote the lowest rate of interest linked to MCLR or linked to any other market determined external benchmark, clearly specifying the reset period which cannot be less than one month," it said.
Noting that the bids shall be evaluated on the basis of quoted rate of interest, the document said that in case of two bidders quoting the same rates, preference will be given to bidder quoting rates linked to benchmark other than treasury bill.
The development comes at a time when NTPC is looking a growth in both thermal and renewable energy spaces.
Recently, the power major invited bids to procure imported 4.53 million tonne (MT) coal for blending with the domestic dry fuel in thermal plants. The move to import came at a time when the country is facing a power shortage situation.
On the renewable front, the government-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.
Share of NTPC on the BSE closed at ₹148.60, on Thursday, lower by ₹4.05 or 2.65% from its previous close.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
