NHPC seeks shareholders nod to raise borrowing limit to Rs 40,000 cr

By: |
September 01, 2021 10:14 PM

The NHPC is presently engaged in the construction of seven hydro-electric projects and two Solar Projects  with an aggregate installed capacity of 5,999 MW  which includes projects implemented through  subsidiary/joint venture companies, it stated.

NHPCFurther, it said that the projects having aggregate installed capacity of 10787.1 MW on consolidated basis are under clearance/approval stage.

State-run hydro power giant will seek its shareholders’ approval to raise borrowing limit by Rs 10,000 crore to Rs 40,000 crore in the annual general meeting on September 29, 2021.

The proposal to increase borrowing limit of the company from  Rs 30,000 crore to Rs 40,000 crore is listed on the agenda of the AGM, stated the notice for the AGM.

The company explained that keeping in view of fund requirements of the company due to rapid capacity addition programme, the limit of Rs 30,000 crore is required to be increased.

The tentative debt requirement for both ongoing projects and new projects up to 2031 as per CAPEX requirements will be approx. Rs 50,000 crore, which will exceed paid up share capital, free reserves and securities premium of the company, it added.

The NHPC is presently engaged in the construction of seven hydro-electric projects and two Solar Projects  with an aggregate installed capacity of 5,999 MW  which includes projects implemented through  subsidiary/joint venture companies, it stated.

Further, it said that the projects having aggregate installed capacity of 10787.1 MW on consolidated basis are under clearance/approval stage.

NHPC is in rapid capacity addition mode by taking projects of  different sources of energy i.e. hydro, renewables  etc. These projects are to be financed in debt-equity ratio of 70:30 as per CERC norms.

The main constituents of the company’s borrowings are generally in the form of bonds/ debentures, rupee term loans from banks and financial institutions, foreign currency borrowings, foreign  currency bonds etc, it stated.

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