National Thermal Power Corporation on Monday announced a net profit of Rs 4,905 crore (Rs 49.05 billion), reflecting a whopping 36 per cent increase over the previous fiscal while coming out with major investment plans including foray into hydro-electric power.
NTPC's gross revenue went up to Rs 25,184 crore (Rs 251.84 billion) in 2003-04 as against Rs 19,850 crore (Rs 198.50 billion) in 2002-03, C P Jain, chairman and managing director, NTPC, told a news conference in New Delhi.
With nearly 20 per cent share of total installed capacity of the nation, thermal-based NTPC had taken a major initiative in hydro-electric power with over a dozen projects, totalling over 8000 MW at various stages.
Of this, 10 projects worth 5361 MW were under the prime minister's 50,000 MW hydro initiative.
As part of the 10th Plan target of adding 9370 MW, NTPC had already commissioned 1500 MW, Jain said, adding projects for 6210 MW capacity were under implementation and for 1160 MW bids had been invited.
He said NTPC targeted to become a 56,000 MW company by 2017.
The company also announced 0.5 per cent of its net profit would be earmarked for research and development every year.
With an authorised share capital of Rs 10,000 crore (Rs 100 billion) and paid up capital base of Rs 7812.5 crore (Rs 78.12 billion), NTPC was likely to hit the capital market for raising its equity base by about five per cent, in the current financial year, Jain said.
During 2003-04, NTPC made its debut issue of Eurobonds amounting to $200 million to finance the capital expenditure of on-going and new projects, Jain said, adding these bonds carried an interest rate of 5.5 per cent per annum payable semi-annually.
These bonds would be redeemed at par on March 10, 2011, he added.
During the year gone by, NTPC also tied up a line of credit facility of Rs 7,000 crore (Rs 70 billion) with Life Insurance Corporation as part of domestic borrowing, he said.
Assistance from LIC would be available in the form of unsecured term loan of Rs 4,000 crore (Rs 40 billion) and bonds worth Rs 3,000 crore (Rs 30 billion), Jain said, adding this was the largest financial assistance provided by LIC to any single entity.
In effect, the company has tied up loans from domestic banks and financial institutions aggregating Rs 12,269 crore (Rs 122.69 billion) as on March 31, 2004 for its capacity addition programme.
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