State—run power producer National Thermal Power Corporation (NTPC) has tied up with German entity KfW for a fixed interest term loan facility of 95 million euros (about Rs 738 crore).
The loan facility would be utilised to part finance the capital expenditure on renovation and retrofitting of Electro Static Precipitators at various generation stations of NTPC to reduce fly ash emissions.
In a statement, NTPC said the term loan facility of 95 million euros would have a fixed interest.
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“The facility has a door to door maturity of 12 years including grace period of 4 years. The loan shall be repaid in 16 equal semi annual instalments. KfW has in the past also provided financial cooperation to support the company’s renovation and modernisation and expansion schemes,” it added.
NTPC Director (Finance) A.K. Singhal said the agreement reinforces the strong and long standing relationship between the company and KfW.
“It is indeed a great honour that KfW and the German government recognise NTPC. It very well reflects the strong credit quality and governance systems of the company,” he noted.
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KfW is Germany’s leading development bank.