New Delhi: NTPC, India’s largest power generating company, has signed term loan agreement for Rs. 1,500 crore with HDFC Bank Limited on 10th July 2018 for its various projects. The loan has a door-to-door tenure of 15 years and will be utilised to part finance the capital expenditure of NTPC and has been extended at an interest rate linked to 3-months Marginal Cost of funds based Lending rate (MCLR) of the bank.
The loan agreement was signed was signed in the presence of A. K. Gautam, General Manager (Finance), NTPC, Raveesh Bhatia, Regional Head, Corporate Banking, North, HDFC Bank Ltd., and K. Sreekant, Director (Finance), NTPC Ltd.
The proceeds of the facility will be utilized to finance capital expenditure on the company’s ongoing and new projects, and in the renovation and modernization of stations.
NTPC is India’s largest energy conglomerate with roots planted way back in 1975 to accelerate power development in India. Since then it has established itself as the dominant power major with the presence in the entire value chain of the power generation business.
From fossil fuels, it has forayed into generating electricity via hydro, nuclear and renewable energy sources. This foray will play a major role in lowering its carbon footprint by reducing greenhouse gas emissions. To strengthen its core business, the corporation has diversified into the fields of consultancy, power trading, training of power professionals, rural electrification, ash utilization and coal mining as well.
NTPC became a Maharatna company in May 2010, one of the only four companies to be awarded this status. NTPC was ranked 400th in the ‘2016, Forbes Global 2000’ ranking of the World’s biggest companies.