The country’s largest power producer, NTPC, has invited bids from banks for taking rupee loans of up to Rs 5,000 crore required for its capital expenditure programme.
The PSU has sought that each bank/financial institution shall place an unconditional and irrevocable commitment mentioning the rate of interest (in two decimals) and the quantum of loan offered.
Its loan document said that banks should quote the lowest rate of interest linked to MCLR or linked to any other market determined external benchmark, clearly specifying the reset period which cannot be less than one month.
Revision in quantum, as well as ROI, will not be allowed once the bid has been submitted. Moreover, each bank would be required to participate only if the quantum of loan is Rs 500 crore or more.
The company’s RFW fit loan mentions that proceeds of the loan shall be utilised towards capital expenditure for ongoing/new capacity addition programmes, including takeover of projects, buying out government’s equity stake in PSUs under the disinvestment programme of the government of india, renewable energy projects, coal mining and washeries, renovation and modernisation of various projects, refinancing of loans and general corporate purposes etc.