NTPC to issue $1 billion rupee-denominated bonds to finance capex

NTPC, India's largest power producer, is planning to raise rupee-denominated 'Global INR' bonds worth $1 billion to finance its capital expenditure.

"NTPC is planning to raise rupee denominated Global INR bonds to part finance its capital expenditure," a senior company official said.

The official said that NTPC would issue these Global INR bonds soon after the guidelines are notified in this regard after assessing market conditions and funds requirement this year.

NTPC board had approved a proposal to raise $1 billion through bonds from overseas bond markets on April 28.

The power producer requires funds mainly for expanding its generation capacity. It envisages that the renewable energy will contribute 28 per cent to its capacity of 1,28,000 MW by 2032.

At present, NTPC has an installed power generation capacity of 44,598 MW and the company plans to set up 3,000 MW capacity solar power projects across the country this fiscal.

The government plans to have 1,60,000 MW renewable power generation capacity by 2022 for which, an investment of $250 billion would be required.