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NTPC signs term loan agreement with Canara Bank

NTPC has signed a term-loan agreement with Canara Bank to raise Rs 2,000 crore which it plans to use to partly fund it Capex

NTPC signs term loan agreement with Canara Bank
NTPC signs term loan agreement with Canara Bank

New Delhi: State-owned power generator, NTPC Limited, has signed a term-loan agreement with Canara Bank to raise Rs 2,000 crore which it plans to use to partly fund it Capex. A statement released by NTPC said, "A term loan agreement for Rs 2,000 crore was signed with Canara Bank on April 5, 2019. The loan facility is extended at an interest rate linked to 3-Month MCLR of the Bank."

The loan has a door to door tenure of 15 years and will be utilised to part finance the capital expenditure of the NTPC, the public sector undertaking said. Earlier in February, another term loan agreement was signed between NTPC and the State Bank of India for Rs 5,000 crore. The loan facility was also availed for funding the PSU's capex. The news comes just days after the state-owned enterprise announced that it had crossed the 55,000-MW mark with the commissioning of the first unit of 800 MW of Gadarwara Super Thermal Power Project. The Gadarwara Supercritical coal-based power project is located in Madhya Pradesh.

NTPC group, including its joint ventures and subsidiaries, currently operates 52 stations based on coal, gas/liquid fuel, solar, hydro and wind energy. NTPC aims to achieve a total installed capacity of 130 GW by 2032.

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