NHPC Limited, a PSU Mini Ratna company engaged in hydro power development in the country, plans to issue tax free secured redeemable non-convertible bonds in the nature of debenture of face value of Rs. 1,000 each, having benefits under section 10(15)(iv)(h) of the Income Tax Act. The company is planning to issue bonds for an amount aggregating up to Rs. 500 crore with an option to retain oversubscription up to Rs. 500 crore for issuance of additional bonds aggregating to a total of up to Rs. 1,000.00 crore. The issue opens for subscription today and is scheduled to close on November 11, 2013.
NHPC, which presently has an installation base of 5702 MW from 17 hydropower stations on ownership basis including projects taken up in Joint Venture, is planning to utilize the funds raised through this issue for meeting the debt requirement for ongoing construction projects including recoupment of expenditure already incurred. NHPC Limited is presently engaged in the construction of 7 projects aggregating to a total installed capacity of 4095 MW.