NTPC to raise Rs 5,000 crore via term loan to fund capital expenditure (capex)

NTPC will use the proceeds of the loan for investment in new and existing capital-intensive projects such as energy generation, coal mining, etc.

The state-owned National Thermal Power Corporation, India’s largest power producer, has issued a tender for raising Rs 5,000 crore in term loans to finance new and existing electricity generation projects.

As per the request for proposal (RFP) document, proceeds of the loan are to be used for capital expenditures on ongoing and new capacity addition projects, including takeover of renewable energy projects, coal mining and washeries, renovation and modernisation programs, refinancing of loans, and general corporate purposes.

The document details the bidding procedures for a Rs 5,000 crore term loan sought by NTPC Ltd. The minimum amount of loan offered by participating lending institutions will be Rs 500 crore, with multiple bids accepted in increments of Rs 500 crore.

The bids opening will take place on 27 May 2022, and all bids must be submitted before that date.

National Thermal Power Corporation is the largest power producer in India in terms of both installed capacity and generation, with an aggregate installed capacity of 68,961.68 MW.

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