NTPC seeks Rs 2700cr loans
National Thermal Power Corporation (NTPC) has sought Rs 2,700 crore in loans from Industrial Credit and Investment Corporation of India (ICICI) and Industrial Development Bank of India (IDBI) to part-finance its various on-going as well as new power projects. The corporation is negotiating for a Rs 1,500 crore loan from IDBI and Rs 1,200 crore loan from ICICI to part-finance its on-going Vindyachal, Talcher, Simhadri and other green field gas-based power projects, corporation sources said. Negotiations with IDBI for the loan were in advanced stages and it was likely to be finalised by the month end, they said.The corporation is likely to seek formal approval from its board for the two loans by the end of this year. Sources said the rate of interest and the repayment period for the 10-year loans were yet to the finalised, but indicated that the corporation would like the rate to be settled between 14 to 14.5 per cent.
The corporation has already tied up for about Rs 5,000 crore of credit from various commercial banks including the State Bank of India (SBI), Bank of Baroda and the Canara Bank. SBI had recently agreed to sanction a Rs 750 crore, 10-year term loan to NTPC at prime lending rate (PLR), the sources said.
IOC enhances capacity of Salaya-Viramagam-Koyali pipeline
Indian Oil Corporation (IOC) said on Wednesday that it had enhanced capacity of its Salaya-Viramgam-Koyali crude oil pipeline to 21 million metric tonnes per annum. IOC had increased the capacity of the pipeline due to the expansion of Gujarat refinery from 9.5 million metric tonnes per annum to 12.5 million metric tonnes per annum, a company statement saidin New Delhi. The Gujarat refinery is located at Koyali. The indigenous and imported crude oil is transported through Salaya-Mathura pipeline, the release said adding the capacity of the pipeline was also increased to meet the growing demand for oil in the state.
RSMDC works out novel way to get its money from SAIL
The Rajasthan State Mineral Development Corporation Ltd (RSMDC) is practising a novel idea in marketing its product to the ailing and nearly insolvent Steel Authority of India Ltd (SAIL). It has devised and is gaining from a round-about barter system for selling its steel-grade limestone to SAIL. SAIL gives credit notes in favour of RSMDC for the limestone lifted from its mines and the latter gets the payment (against the credit notes) from Rajasthan Small Industries Corporation Ltd. Under an agreement signed with Rajasthan Small Industries Corporation, RSMDC gets the payment from its funds. SAIL in turn does not get payment from the Rajasthan Small Industries Corporation for the steel the latter buys from the steel giant. Thus, despite SAIL's tight financial position, RSMDC is regular in getting payments on the sale of its limestone, thanks to the innovative marketing mechanism it has worked out, said CMD .KK Saxena.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.