Tamil Nadu power units to raise Rs.11,000 croreMarch 12th, 2012 - 10:58 pm ICT by IANS
Chennai, March 12 (IANS) State-owned Tamil Nadu Generation and Distribution Corporation Ltd (Tangedco) and Tamil Nadu Power Finance Corporation would together raise around Rs.11,000 crore through bonds and government guarantees, a top official said.
Speaking to reporters here Monday on the sidelines of RENERGY 2012, an international conference on renewable energy Rajeev Ranjan, chairman, Tamil Nadu Electricity Board (TNEB) said the time frame for raising the money through bonds depends on market conditions.
TNEB is the holding company for Tangedco.
Ranjan said the state government is standing guarantee so that funds could be raised to the tune of Rs.5,000 crore and Tamil Nadu Power Finance Corporation would raise Rs.6,000 by issuing bonds.
Speaking to IANS, a senior Tangedco official not wanting to be named in the report said that the term loan of Rs.5,000 crore would be raised by TNEB in a month or two and the bond issue by Tamil Nadu Power Finance Corporation will be in two or three tranches starting next fiscal.
The term loan is expected to be at an interest rate of around 12 or 12.5 percent per annum.
Further, Tangedco is also expected to increase its revenue by Rs.10,000 after the upward revision in the power tariff.
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Tags: bond issue, corporation ltd, crore, distribution corporation, electricity board, holding company, interest rate, issuing bonds, power finance corporation, power tariff, renergy, renewable energy, report said that, sidelines, state government, term loan, time frame, tneb, tranches, upward revision