NTPC Green Energy to Raise Up to Rs 9,000 cr Term Loan

Energy conglomerate NTPC (National Thermal Power Corporation) has issued a tender for the power evacuation Infrastructure package under development of 4750 MW solar park at Khavda, Gujarat. 

NTPC Green Energy Ltd (NGEL), an NTPC subsidiary, has invited bids for a  term loan of up to Rs 9,000 crore in Indian Rupee denomination.

As per the bid document, NGEL intends to raise fresh debt and  the funds collected will be used to repay outstanding liability of Rs 8,200 crore towards NTPC by March 31, 2023 along with applicable interest cost.

Further, It also stated that additional funds of Rs 800 crore would be required for additional debt liability and balance capex payments of projects that have yet to achieve full commercial operations. Hence, NGEL said it has requested offers for a term loan denominated in rupees of up to Rs 9,000 crore.

It informed  that banks and FIs (financial institutions) must issue loans in multiples of Rs. 500 crore at first and at least Rs. 1,000 crore thereafter. The last date for proposal of submissions is March 6, 2023.

In order to consolidate its renewable energy companies and pursue its green/sustainable energy endeavour, NTPC had established NGEL in April 2022 through a Business Transfer Agreement of 15 RE projects from NTPC. It has operational / under implementation RE projects aggregating to 2861 MW (14 solar power projects of 2811 MW and a wind power project of 50 MW). Out of the above15 projects, 13 projects (2261 MW) are fully operational and the remaining two projects are partly operational (operational capacity 350 MW out of 600 MW) taking cumulative operational capacity
to 2611 MW as on date. These 15 RE projects have firm PPA tie-up for 100% capacities with State DISCOMs, CPSE.

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