NTPC plans roadshows for $200mn intl bonds issue

National Thermal Power Corporation Limited (NTPC) is set to conduct roadshows for its forthcoming international bonds issue.

The roadshows are expected to start by the end of February. NTPC expects to raise close to Rs 900 crore in funding from international investors.

Speaking to newspersons on the sidelines of the dedication programme of the 1,000 mw Simhadri Thermal Power Plant (STPP) on Monday, C P Jain, the chairman and managing director of NTPC, said: "We are going to raise $200 million (Rs 900 crore) from NTPC international bonds in the markets abroad. For this, we plan to organise road shows in a few countries to create awareness about NTPC and its proposed bonds issue among foreign investors. We expect a good response to our bonds issues."

Jain said that NTPC would invest Rs 1,50,000 crore by 2017 to reach its targets in power generation.

"At present, NTPC is generating 21,749 mw. NTPC has embarked upon a capacity addition programme to reach 56,000 mw by 2017 for which the company requires Rs 1.5 lakh crore. Of the required Rs 1.5 lakh crore, nearly 30 per cent will be generated internally, while the remaining 70 per cent will come through borrowings, bonds and public issues," Jain said.

Prime minister Atal Behari Vajpayee dedicated the STPP project to the nation on Monday from Vigyan Bhavan, New Delhi.

"We don't have any plans on expanding the Simhadri Power Plant as of now. At present, power generation in the country through natural gas is costlier as compared to coal. NTPC has been spending close to Re 0.90 per unit for generating power from coal, whereas natural gas costs around Rs 1.60 per unit in Gujarat and Rs 1.10 per unit in Mumbai. Due to these reasons we have no plans of setting up gas-based power plants in the country in the near future,"Jain said.