NTPC inks Rs 10,000-cr term loan pact with SBI; Identifies private firms for acquisition

The pact was signed in the presence of Arup Roy Choudhury, CMD, NTPC, Arundhati Bhattacharya, chairperson, SBI and K Biswal, director (finance) NTPC.

INDIA'S largest thermal power producer NTPC has signed a term loan agreement of Rs 10,000 crore with state-run lender SBI for partially funding its capital expenditure.
"NTPC has signed a term loan agreement for Rs 10,000 crore with State Bank of India. The loan has a door to door tenure of 15 years and will be utilised to..
part finance the capital expenditure of the company," NTPC said in a statement. The loan will help the power producer in its ambitious expansion drive.
NTPC, with an installed capacity of 43,128 MW is presently contributing about one fourth of the country’s entire power generation and plans to become a 1,28,000 MW power company by 2032. NTPC plans to add 14,038 MW during the 12th Plan period (2012-17).

The loan agreement was signed in the presence of Arup Roy Choudhury, CMD, NTPC, Arundhati Bhattacharya, chairperson, SBI and K Biswal, director (finance) NTPC. 

It added 1,835 MW to its portfolio last fiscal and plans to add 2,023 MW in 2014-15 and the Maharatna PSU has cash reserves of Rs.16,867.7 crore as on 31 March this year.
In a related development, NTPC has identified seven to eight private power projects as potential acquisition targets and will decide on them before end of the current fiscal.
"We will make an announcement before March 31, 2015. We have identified 7-8 private power projects for acquisition," NTPC CMD Roy Choudhury told reporters on the sidelines of India Energy Forum.
NTPC is reportedly in talks with private power companies like L&T and Shapoorji Pallonji Group for taking over their stranded plants.
NTPC may also ask interested parties to come forward with their stranded projects and then evaluate them.
The criteria for selecting the project would be based on the availability of coal linkage, environmental clearance, land and water available to the plant and it should also have a PPA (power purchase agreement) in place.
The criteria for selecting the project would be based on the availability of coal linkage, environmental clearance, land and water available to the plant and it should also have a PPA (power purchase agreement) in place.