NTPC to raise ₹12,000 crore via bonds, NCDs issue: Focus on ongoing and expansion projects

India's largest power producer National Thermal Power Corporation Limited (NTPC) board has approved raising up to ₹12,000 crore through the issue of bonds or Non-convertible debentures (NCD), said the company in a BSE filing post the board meeting held on Saturday, June 29.

The state-run power producer said that the Board of Directors of the company has approved the issue of secured/ unsecured, redeemable, taxable/tax-free, cumulative/non-cumulative, non-convertible debentures (Bonds/NCDs) up to ₹12,000 crore, according to the filing. It would be done through private placement in the domestic market before the next Annual General Meeting in the financial year 2025-26, the company said.

“The size, tenure, listing details (BSE and/or NSE), coupon, security (if applicable) and other details as applicable will be decided at the time of issue of each tranche/series,” said the company. It would be done in one or more tranches but will not exceed 12, they said.

NTPC shares closed at ₹378.35 on Friday, June 28th, 0.46 per cent higher than the previous day's close at ₹376.60.

NTPC is the largest power producer in India and the sixth-largest thermal power producer in the world, according to India Brand Equity Foundation (IBEF) data. The company has 50 power stations comprising 26 coal, seven combined cycle gas/liquid fuel, one large and one small hydro and 15 solar PV, along with 39 subsidiary and JV power stations.

The company is focusing on multiple projects both ongoing as well as expanding into new ones, said NTPC in the quarterly conference call. The projects include renewable energy projects including hydropower ones, and Flue Gas Desulphurisation (FGD) projects, as reported by MoneyControl.

As of January 31, 2024, coal thermal power capacity was at 240.44 gigawatts (GW), gas thermal power capacity at 25.03 GW, and diesel thermal power capacity at 0.59 GW. The Ministry of Power has identified 81 thermal units which will replace coal with renewable energy generation by 2026 to meet India’s 500 GW renewable energy target and tackle the annual issue of coal demand-supply mismatch, according to IBEF data.