NHPC Seeks Reserve Bank Nod For $100 Million ECB

Updated: Nov 11 2003, 05:30am hrs
National Hydroelectric Power Corporation (NHPC) has approached the Reserve Bank of India seeking approval for raising $100 million external commercial borrowings (ECB), a top company official said here.

We have already appointed Standard Chartered and Barcley banks as lead arrangers for raising $50 million as we can raise this amount without RBIs permission. But to raise $100 million, we need RBIs approval for which we have given an application, NHPC CMD Yogendra Prasad told PTI.

Mr Prasad said by November 25, the company should be getting $50 million, while pointing out that for $100 million it may take some time.

Sources, however, pointed out NHPCs $100 million ECB issue could face problems in the wake of rising foreign exchange reserves and RBIs approval could be difficult.

They said rupee appreciation in the last few months had made ECBs difficult.

But in case the ECBs were used for importing machinery and other equipment, RBI could give approval quickly, they said, adding all the project-related details, for which ECBs would be used, have been given to RBI.

Currently, NHPC required funds for three projects including about Rs 6,500 crore for subansiri lower and Rs 600 each for Sewa II and Teesta low dam, officials said.