NTPC planning to raise funds via green bonds for THDCIL, NEEPCO acquisition
25th Nov 2019

NTPC is planning to raise around Rs 10,000 crore through green bonds for acquisition of the government's stake in THDC India (THDCIL) and North Eastern Electric Power Corporation (NEEPCO). Proceeds from green bonds are used to finance clean and green and environment-friendly infrastructure. Since THDCIL and NEEPCO are hydro-power generators, any investment in these two firms would fall in the category of green bonds.

Earlier, the Cabinet Committee on Economic Affairs (CCEA) had approved a proposal of the finance ministry for divestment of central government stake in THDCIL and NEEPCO. Government of India's shareholding of 74.23 per cent in THDCIL will be divested along with transfer of management control to NTPC.

NTPC is the largest power utility company in India and has presence in Coal, Gas, Solar PV, Hydro and Wind Power Generation and Coal Mining.