NTPC to raise Rs 5,600 cr for executing Sipat project

Mumbai, January 30: | Updated: Jan 31 2002, 05:30am hrs
The state-run National Thermal Power Corporation (NTPC), which proposes to implement the Rs 8,100-crore Sipat project on 70:30 debt equity ratio, has embarked upon a plan to borrow as many as Rs 5,600 crore from domestic and external sources.

NTPC chairman and managing director CP Jain told The Financial Express that it would make an equity contribution of Rs 2,400 crore through internal resources and also from the government funding. “Of the total Rs 5,600 crore, nearly Rs 1,200 crore to Rs 1,500 crore will be borrowed from banks and financial institutions. We are currently holding talks with some of them,” he said.

According to Mr Jain, nearly Rs 2,000 crore would be raised through bond issues and the balance from export credit agencies and external commercial borrowings. “We will go for both the dollar and euro borrowings,” he added.

Mr Jain said that NTPC was looking at the total interest cost of 11.5 per cent to 12 per cent for these borrowings.

Further, Mr Jain said that its borrowing programme for the Sipat project would also coincide with its fund mobilisation for other power projects. “NTPC’s total budget for capacity addition of 9,160 mw by the end of 10th plan would be a whopping Rs 36,000 crore,” he added. The list of these projects included Simhadri —1,000 mw; Talcher —2000 mw; Ramagundam-III -500 mw, Rihand —1,000 mw, Kawas-II —650 mw, Gandhar-II — 650 mw, Anta —650 mw, Auraiya —650 mw; Koldam —800 mw and Barh —1,980 mw.

Mr Jain said that NTPC has been pursuing its interests in the construction of a 1,000 mw power project in the neighbouring Bangladesh.

“We have sent a fresh communication after the formation of new government in Bangladesh to seek its approval. The idea is to supply power to Bangladesh and also transmit some power to India,” he added.

Mr Jain said that NTPC was open to take over the brownfield projects, especially where the state electricity boards (SEBs) were not in a position to liquidate their arrears. He informed that it had already taken over such projects in the past against outstandings of SEBs.

The NTPC chairman said that it was also keen to explore opportunities in the establishment of wind and hydro projects. At present, NTPC was examining the business prospects in carrying out wind power project in Tamil Nadu, while the construction work on 800 mw Koldam hydel project has recently been launched.