New Delhi: National Thermal Power Corporation (NTPC), India's biggest power producer, plans to borrow about Rs200 billion (Dh16 billion or $4.5 billion) in the year that started April 1 as it quadruples generating capacity to help reduce blackouts across the country.
"We have tied up almost 70 per cent of our debt needed for this year, primarily with domestic banks and financial institutions," Chairman R.S. Sharma told reporters in New Delhi yesterday.
"We will definitely go overseas for borrowings as well and are talking with various bankers."
The utility plans to spend as much as Rs290 billion in 2010-11, Sharma said. NTPC is targeting setting up 4,000 to 4,500 megawatts of generation capacity in the current financial year, compared with 1,000 megawatts added last year, he said.
The generator of a fifth of India's electricity needs to accelerate construction of power plants after failing to meet its target for adding capacity last year because of equipment delays.
Energy demand has soared in the world's second fastest- growing major economy, which the government estimates may expand 8.25 per cent to 8.75 per cent in the 12 months through March.
NTPC shares have gained 13 per cent in the past year, trailing the 70 per cent increase in the benchmark Sensitive Index.
The generator may borrow 70 per cent of the Rs250 billion it plans to spend in 2010-11, Sharma said in January. State Bank of India and Life Insurance Corporation of India are among institutions that have approved loans to NTPC, Sharma said at the time.