Power Finance Corporation, the country's top power project financier, has agreed to give Rs 10,000 crore in loans to electricity generation company NTPC for 18 of its ongoing projects. This could be one the biggest corporate funding ever carried out in the country.
“This is an intercorporate loan to fund various projects that NTPC intends to undertake during the 11th Five Year Plan,” a senior NTPC official said.
According to PFC, the two organisations will sign a Memorandum of Understanding next week and disbursements of funds will be made in installments.
NTPC will fund a mix hydro and thermal projects with the loan.
India intends to add nearly 79,000 mega watts through 11th Five Year Plan ending in 2012, but the country had consistently failed to meet similar targets in the previous three plan periods.
NTPC generates about 30,000 MW now and intends to increase its power generation capacity by nearly 70 per cent in the next five years, for which it has lined up capital expenditure of Rs 13,500 crore.
The projects will cater to the growing demand of especially in the power deficient states of Madhya Pradesh, Bihar, western Uttar Pradesh, said the NTPC official, who spoke on condition of anonymity.
NTPC also intends to double its coal imports during the current financial year to five million tons and its overall all fuel consumption is expected to rise to 124 million tons in 08-09. In the last financial year, NTPC plants consumed 124 million tons of coal.