... likely to get Rs 10k-cr PFC term loan

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Mumbai, Jul 14: The state-run NTPC would get a term loan of Rs 10,000 crore from the Power Finance Corporation (PFC). The proposed loan would be to finance the debt portion of the cost of NTPC's big-ticket projects due to be implemented during the 11th plan period.

With a tenure of approximately 16 years, the loan will be borrowed at a rate of interest based on three year AAA bond yield plus 45 basis points. NTPC sources told FE that it has already signed memorandum of agreement (MoA) with PFC in this regard.

NTPC plans to increase its generating capacity from 30,000 MW to 50,000 MW by 2012. With this aim in mind, the power major has lined up funds to the tune of Rs 46,566 crore to meet the capital expenditure demand of its expansion plans in the current plan period, of which, Rs 13,372 is earmarked for projects envisaged to receive investment sanction during the current financial year. NTPC is poised to become a 75,000 mw plus company by the year 2017.