NTPC Ltd.

State-run power generation utility NTPC is reportedly planning to raise Rs 2,500 crore via issue of tax-free bonds this fiscal to fund its capital expenditure needs. This bond issue will be the first of the Rs 50,000 crore tax-free infrastructure bonds that the government has proposed to issue during the Union Budget 2013-14.

The company has approached the government for permission to issue the bonds with maturity periods ranging from 10-20 years due to the long time power projects take to build.

The company, which expects to incur a capital expenditure of Rs 20,200 crore in 2013-14 on various heads, expects to fund Rs 7,959 crore of this amount from internal resources and raise debt of Rs 12,241 crore. The bonds would form part of the debt component.