INFRASTRUCTURE FINANCING MODELS IN POWER SECTOR AT NTPC

Abstract

Infrastructure financing is essential for the development, expansion, and sustainability of the power sector, especially for capital-intensive enterprises like NTPC. This paper analyzes infrastructure finance options utilized in the power sector, focusing on NTPC, the largest electricity producing business in India. The article examines traditional and contemporary methods of financing, including equity financing, debt financing, public sector funding, public-private partnerships (PPPs), green bonds, and multilateral financial assistance. The emphasis is on how NTPC structured its finances to satisfy the increasing energy demand while maintaining financial viability, risk management, and long-term sustainability. The research examines the influence of government policies, market conditions, and regulations on funding decisions within the electricity sector. NTPC's transition to renewable energy and the evolving methods of financing sustainable and enduring infrastructure projects are emphasized. The research identifies optimal practices and insights for the Indian energy sector by analyzing the advantages and disadvantages of various funding methods.