Business · India Bureau
NLC India raises ₹500 crore via commercial paper issuance
State-owned NLC India Ltd has mobilized ₹500 crore through commercial papers, short-term debt instruments that offer a cost-effective funding alternative. The move supports the Navratna company's ambitious ₹1.25 lakh crore expansion plan through 2030.
LSN India ·
NLC India Limited, the coal ministry's Navratna enterprise, announced on Wednesday that it has successfully issued and allotted 10,000 commercial papers with a face value of ₹5 lakh each, totaling ₹500 crore. The issuance, completed on September 22, was disclosed through a regulatory filing to the Bombay Stock Exchange.
Commercial papers represent short-term, unsecured debt obligations that corporations leverage as an economical funding mechanism compared to traditional borrowing channels. For NLC India, the instrument provides flexibility in raising capital for its substantial expansion roadmap.
The capital raise aligns with the company's strategic investment program to enhance operational capacity and modernize its energy portfolio. NLC India currently operates installed power-generation capacity of 8,405 megawatts and maintains annual mining capacity of 59.1 million tonnes. The company plans to significantly expand its mining operations to 104.35 million tonnes annually while upgrading its power-generation infrastructure to meet India's rising electricity demand.
The ₹1.25 lakh crore investment blueprint underscores NLC India's commitment to scaling operations responsibly over the next six years. The capital mobilization through commercial papers demonstrates the company's proactive approach to funding its growth trajectory in India's energy sector.