New Delhi: Indian Railway Finance Corporation Limited (IRFC), a PSU under the Ministry of Railways, has announced that it has emerged as the lowest (L1) bidder for a Rs 5,000 crore Rupee Term Loan (RTL) to be extended to NTPC Limited, India’s largest integrated power utility.
The loan is intended to support NTPC’s ongoing and upcoming capital expenditure requirements, which include new capacity additions, project takeovers, renewable energy ventures, as well as renovation and modernisation of existing assets. The funds may also be used for refinancing of existing loans.
IRFC had submitted its bid on April 18, and NTPC, through a communication dated April 24, has confirmed the acceptance of IRFC’s offer. The proposal, however, remains subject to further due diligence, approval from IRFC’s Board of Directors, and finalisation of sanctioned terms with NTPC.
IRFC is a dedicated financial arm of the Indian Railways. This move is seen as part of IRFC’s continued efforts to diversify its portfolio and contribute to financing India’s energy transition and infrastructure growth, while NTPC continues to push forward with its green energy ambitions and capacity expansion.
Earlier, IRFC had signed a rupee term loan (RTL) agreement with NTPC Renewable Energy Limited (NTPC REL) for Rs 5,000 crore.
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