NTPC to raise Rs20,000 crore through bonds this fiscal

State-owned National Thermal Power Corporation Limited (NTPC), the country's largest power producer, is planning to raise about Rs20,000 crore in the current financial year. NTPC will be raising Rs14,000 crore from the domestic market and the remaining Rs6,000 crore from foreign debt market.

"The company is planning to raise Rs20,000 crore in the current fiscal," Kulamani Biswal, director (finance), NTPC, told reporters. Of the Rs 20,000 crore, Rs14,000 crore would be raised from the domestic market while the remaining Rs6,000 crore would be raised from the overseas bond market. "From domestic market we can go for bank loans also," Biswal said.

NTPC also indicated a possible hike in power prices in view of the higher investment spending and increase in  fuel and working capital requirements.

NTPC chairman and managing director Gurdeep Singh said the "recent increases in the prices by Coal India would have some impact...As per our calculations it (impact) will be having approximately 7.8 paise (per unit). We can say 8 paise per unit that is the impact as by the recent price hike by coal india ....By the time it will go to the states it will depend upon state to state." State-owned Coal India had last month announced nearly 6.3 per cent increase in coal prices and will earn an additional revenue of around Rs3,234 crore during the current fiscal 2016-17.

NTPC supplier Coal India had announced a 6.3 per cent hike in coal prices last month.

With the current installed capacity of 47,178 MW, NTPC contributes 24 per cent of country's generation. The company added 2,255 MW during 2015-16. The company also operationalised 310 MW of solar capacity and it planning to add another 1,310 MW in the near term.

The total assets of the company on a standalone basis stood at Rs2, 14,619.26 crore as of 31 March 2016.

The Indian government aims to install about 100 GW of solar power capacity by 2022 and NTPC will be producing about 10 per cent of this.

In addition, the company plans to expand operations to production of fertilisers, which is a regulated industry, Mint reported. The company wants to be a part of a business, which has assured returns.

Last month, the company had informed stock exchanges that it had approved investments in two solar projects, which had a combined cost of about Rs. 3,104 crore.