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NTPC to borrow funds for expansion plans

Tuesday, 04 May 2010
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NTPC Ltd plans to borrow Rs 12,818 crore during the current fiscal for its capacity addition programme. Of this, it proposes to raise Rs 9,859.74 crore from domestic sources and the balance Rs 2,958.26 crore from the overseas market.

According to sources, the total requirement from domestic sources has been tied up with the State Bank of India, Life Insurance Corporation of India and Power Finance Corporation among the financial institutions that have approved loans. Of the overseas borrowings, an amount of $500 million could be raised through external commercial borrowing (ECB) issue.

NTPC plans to add 4,150 MW capacity in the current financial year. It had put into commercial operations 1,490 MW capacity in 2009-10. In all, the utility is currently working on developing 17,830 MW capacity at 18 locations.

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