NTPC to borrow Rs 20,000 cr in FY-2010-11

NTPC Ltd, India’s biggest power producer, plans to borrow Rs 20,000 crore ($4.5 billion) in financial year 2010-11, as it quadruples generation capacity to help reduce blackouts in the country.“We have tied up almost 70 per cent of our debt needed for this year, primarily with domestic banks and financial institutions,” according to chairman R S Sharma “We will definitely go overseas for borrowings and are talking with various bankers.”The utility plans to spend as much as Rs 29,000 crore in 2010-11, Sharma said. NTPC is targeting setting up 4,000-4,500 megawatts of generation capacity in the current financial year, compared with 1,000 megawatts added last year, he added.The company needs to accelerate construction of power plants after failing to meet its target for adding capacity last year because of equipment delays.The generator may borrow 70 per cent of the Rs 29,000 crore it plans to spend in 2010-11, Sharma had said in January this year. State Bank of India, Life Insurance Corporation of India and Power Finance Corporation are among the financial institutions that have approved loans to NTPC, he had said.