NTPC said on Friday said it will not issue fresh equity to raise funds if the Government goes ahead offloading 9.5 per cent stake in the public sector power producer.
“We do not need to divest any stake for raising funds. We have tied up adequate funds at cheap rates,’’ NTPC Chairman Arup Roy Choudhury told reporters.
The Chairman said that the Department of Divestment has not held any discussion with the company with regard to divestment.
“Sometime back when the issue was raised, we told the Government that timing is not right,’’ Choudhury added.
According to reports, the Finance Ministry is proposing to divest 9.5 per cent stake in NTPC.
Overseas bonds issue
The company has revised its fund-raising limit through MTN route to $2 billion from $1 billion earlier. NTPC plans to issue overseas bonds worth $500-750 million in 2012-13. Post this, it may also raise another $250 million through syndicated loans.
“We are waiting for the Finance Ministry to decide on 194 LC on lowering withholding tax. Once we get a clarity, we will go ahead on fund-raising plans,’’ said A.K. Singhal, Director (Finance) of NTPC.
In 2012-13, NTPC has lined up a capex of Rs 20,000 crore and it plans to spend Rs 2.19 lakh crore during the 12th Five-Year Plan period.
NTPC said it has operated plants at 87 per cent plant load factor from April till date due to coal shortage. It has generated 2 billion units of less electricity.
“However, the lower generation doesn't affect our revenues,’’ said Choudhury.
Coal import agreements
The Chairman said the company will soon tie up another seven million tonnes of imported coal and it is also examining the signing of long-term coal import agreements.
NTPC said that tenders to import 1.5 million tonnes of coal are under process. About 16 mt of imported coal is required in 2012-13. Of this, contracts for 7.9 mt have been awarded.
The company is working to exploit coal from six captive mines namely Pakri Barwadih, Chatti Bariatu, Chatti Bariatu (south), Kerandari, Dulanga and Talaipalli. These mines have nearly 3 billion tonnes of reserves.
NTPC targets to mine around 37 million tonnes of coal annually by 2017. It has spent Rs 879.81 crore till the first quarter of the current year for the development of these blocks.
A.K. Singhal, Director (Finance) of NTPC. said that NTPC has planned a basket of 1,000 MW of capacity from renewable sources.
Fuel supply pacts
About signing of fuel supply agreements with Coal India, Choudhury said that NTPC does not want to penalise the miner.
“In the first quarter, we have received 10 per cent more coal from Coal India in the first quarter,’’ he added.
NTPC said that if pool pricing of coal is implemented it would be passed through for any increase in the cost of coal.