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NTPC eyes Rs900cr from US pension funds

Gayatri Ramanathan  |  Mumbai 

The National Thermal Power Corporation (NTPC), the country's largest power generator, is likely to raise around Rs 900 crore from in the next financial year to fund its capacity addition programme under the
NTPC is planning to increase its generation capacity from 14,000 mw to 51,000 mw during the 11th Plan period. It will need to raise Rs 1 lakh crore for its ambitious capex programme over the five-year period. As much as 30 per cent of this will be mopped up as equity while the rest will be debt.
A K Kundu, executive director - finance, NTPC, said in the first phase of the financing programme the company would raise Rs 9,000 crore "" Rs 4,500 crore from Asian Development Bank and the rest from other commercial institutions, including private placements with US pension funds.
Asked when the private placements are likely to take place, Kundu said it would be in the next financial year. He, however, said the exact amount of the placement has not been decided.
These, he indicated, could be around 10 per cent of the total funds raised in the first phase. Kundu added that the borrowings would be on the company's balance sheet, without invoking the sovereign government guarantee.
ADB has already sanctioned a Rs 1,350 crore loan to NTPC. Kundu said most of the amount has already been drawn.

First Published: Tue, February 27 2007. 00:00 IST