Roadshow update

( WSJ>com, NTPC Secures Debt )

[ INR 100 billion = INR 10000 Crores ] [India's Current Total Power Capacity = 75 GW (Peak)]

NTPC Ltd. has arranged 450 billion rupees ($9.74 billion) in loans to help raise its power generation capacity to 75 gigawatts by March 2017 from the current 30.6 gigawatts.

The funds will be used to build new plants and to modernize existing ones, Chairman R.S. Sharma told Dow Jones Newswires late Friday.

He didn’t specify exactly how much the expansion will cost in total, but he said that 70% of the money will come from debt and the rest from the company’s cash reserves.

The company plans to invest 250 billion rupees to add 4.5 GW of capacity in the next financial year that starts April 1, up 41% from this fiscal year’s 177 billion rupees.

But NTPC will miss its target of adding 3.3 GW of generation capacity this fiscal year, and may end up adding only 2 GW, Mr. Sharma said.

“We have planned a little bit aggressively. There were slippages. But next year it will be 100%, no slippages are going to take place,” he said, speaking from New York.

NTPC’s capacity expansion plan is in line with the federal government’s aim to improve the nation’s infrastructure.

[tag India, India Infrastructure, IPO]

[category india]

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