NTPC summons banks to raise 5,000 cr
India’s largest power producer, NTPC, has invited bids from banks to take rupee loans of up to Rs 5,000 crore that is needed for its capital expenditure program. However, the PSU prefers each bank or financial institution to place an unconditional and irreversible commitment mentioning the rate of interest (in two decimals) and the quantum of loan offered.
Furthermore, the loan document hints that banks should quote the lowest rate of interest that is associated to MCLR or linked to any other market resolute external benchmark, clearly specifying the reset period that could not be less than one month.
Revision in quantum as well as ROI would not be allowed once the bid has been submitted. Alongside, each bank would be need to participate only if the quantum of loan is 500 crore or more.
The firm’s RFW fit loan mentions that proceeds of the loan shall be used towards capital expenditure for ongoing/new capacity addition programs, that include takeover of projects, buying out government's equity stake in PSUs under the disinvestment program 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 and many more.
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