NTPC gets 100mln term loan from KfW Germany

New Delhi, Mar 28: State-owned power major National Thermal Power Corporation Ltd (NTPC) has entered into an agreement with Germany's banking group KfW for a term loan of 100 million dollars.

The funds would be utilised to part finance the expenditure on Renovation and Modernisation (R&M) of the company's power plants.

KfW had earlier routed funding for projects undertaken by it through the Indian government. This would be the first loan KfW has extended directly to NTPC.

The loan is unsecured facility without sovereign guarantee bearing variable interest linked to LIBOR and with a door-to-door maturity of 10 years.

KfW is a German banking group and the term loan is for the purpose of part-financing renovation and modernization of NTPCs power plants.

The company had earlier announced plans to invest Rs 13,65 crore for renovation of three power plants -- Singrauli, Rihand and Vindhyachal -- with a total capacity of over 6,500 MW to enhance their lifespan by up to 25 years.

UNI