NTPC tied up loan worth Rs 85 bn from SBI

As per a leading business daily, NTPC has tied up a loan worth Rs 85 bn from SBI. Interestingly, this is largest such loan given by SBI to a power utility firm. The loan has a tenure of 10 years and an interest rate linked to the bank’s advance rate. The loan will be drawn over a period of three years to fund NTPC’s ongoing projects. It may be noted that the company plans to increase its capacity to 50,000 MW by FY12 by adding around 22,000 MW. It plans to use Rs 17.7 bn out of the loans in FY10 itself.