PTC proposes to expand its capital base from Rs 6 crore to Rs 40 crore. Three current promoting companies, Powergrid, NTPC and Power Finance Corporation (PFC), will first put in fresh equity to raise the capital base to Rs 24 crore. Powergrid is raising its equity contribution from Rs 3 crore to Rs 12 crore, while NTPC and PFC will increase their shareholding from Rs 1.5 crore to Rs 6 crore, each.

The balance of Rs 16 crore is proposed to be allotted to the four FIs. PTC is currently in talks with these institutions to work out the final details, as the total capital proposed to be put in the company by them is Rs 17.50 crore, which is more than the 40 per cent (Rs 16 crore) earmarked for FIs.

PTC chairman and managing director TN Thakur confirmed that the corporation has received proposals from the four institutions. Whereas, IDBI, ICICI and IDFC have proposed to put in Rs 5 crore each, IFCI has offered to pump in Rs 2.50 crore, he added.

"The 60 per cent equity contribution by Powergrid, NTPC and PFC will not be disturbed. Financial and banking institutions, and the public, at a later stage, will be accommodated within the balance of 40 per cent", Mr Thakur said. PTC further plans to raise the capital base to Rs 60 crore by March 2002, in which the other FIs, such as UTI, LIC and GIC, are proposed to be brought in as shareholders. However, the overall FI holding limit will be maintained at 40 per cent. Currently, the National Thermal Power Corporation, Power Grid Corporation (PGCIL) and Power Finance Corporation are the main promoters of PTC. Powergrid holds 30 per cent equity and 15 per cent each is held by PFC and NTPC.

PTC has drawn plans to trade 1,072 kwh power during the current financial year and 39,500 kwh by 2007-08. The revenue generation from this trade is likely to be Rs 2,290 million in 2000-01 and over Rs 11,2080 million by 2007-08. As of now, PTC has a small equity base of Rs 6 crore on an authorised capital of Rs 150 crore, and the government is planning to soon increase the equity base of the corporation to Rs 24 crore. Towards this, Powergrid will put in Rs 9 crore and both NTPC and PFC will contribute Rs 4.5 crore each.