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Country's largest power producer NTPC has tied up $430 million (nearly Rs 2,700 crore) funding from Japan Bank for International Co-operation (JBIC) for two projects.
The funds would be utilised for Kudgi and Auraiya power projects.
NTPC would get a term loan of $350 million to finance the supplies and services from Japan as well as India for the Kudgi Super Thermal Power Project Stage-I (3x800 MW). It is located in Karnataka.
"The facility consists of a CIRR (Commercial Interest Reference Rate) based fixed interest tranche and a floating interest rate tranche, with a door to door maturity of about 15 years," the company said in a statement today.
Another loan of about $80 million would be utilised to finance the renovation and modernisation of gas turbines at 652 MW Auraiya gas power station in Uttar Pradesh.
This facility is a CIRR based fixed interest rate facility with a door to door maturity of over 12 years.
"In both the loans, 60% of the facility amount is provided by JBIC and the balance by commercial banks under NEXI (Nippon Export and Investment Insurance) guarantee.
"The loans are provided on a stand alone basis without any sovereign guarantee reflecting the NTPC's strong credit quality," the statement said.
This is the first time JBIC is directly extending loan facility to NTPC. Earlier, the entity had extended guarantee for an untied loan of $380 million for the company's Barh Stage-I project.
The loan agreements were inked by NTPC Director (Finance) Kulamani Biswal and JBIC Governor Hiroshi Watanabe, Governor, JBIC here on January 25.
NTPC has an installed capacity of 42,454 MW.
