NTPC has approached the GoI for free access to external capital markets for raising debt of about Rs. 1,050bn (c.US$25bn). The ECBs would include Rs. 603bn in foreign currency and Rs. 452bn in rupee term.
At present, companies can raise up to US$500m p.a. through ECBs under the automatic route for import of equipment. An additional US$250m can be raised for the said purpose with the approval of the RBI. However, NTPC wants to raise the money without any ceiling, and is pursuing the matter with the Power Minister.
NTPC aims at becoming a 50,000 MW company by 2012 and a 75,000 MW company by 2017. For achieving these targets, it needs to invest Rs 1,600bn during the 11th Five-year plan, the debt of Rs. 1, 050 bn with 70:30 debt equity ratio.
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