NTPC to borrow Rs 1,000 cr from LIC

State-run National Thermal Power Corporation on Friday said it will borrow Rs 1,000 crore (Rs 10 billion) from Life Insurance Corporation during the fourth quarter of the current fiscal to fund its capital expenditure requirements.

While Rs 500 crore (Rs 5 billion) borrowing will be in the form of term loan, the balance half will be in the form of bonds by way of private placement, NTPC informed the Bombay Stock Exchange.

The generating company has an installed capacity of about 22,300 MW and wants to add another 20,000 MW by 2012. During 2003-07, it has planned to add about 9,000 MW capacity at an estimated capital expenditure of Rs 41,500 crore (Rs 415 billion).

For the year 2005-06, the Corporation has envisaged a capital outlay of Rs 8,550 crore (Rs 85.50 billion), which would be financed in debt-equity ratio of 70:30.

NTPC, which went public in November 2004 and had raised Rs 5,368 crore (Rs 53.68 billion), has already utilised Rs 142.1 crore (Rs 1.42 billion) during the third quarter to fund its capital expenditure on various projects.