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Two government-owned green energy companies in India, NHPC and NTPC Green Energy, are set to raise Rs 4,500 crore through domestic bonds to fund renewable energy projects.
NTPC Green Energy will debut in the local bond market, while NHPC continues its bond strategy.
This move aligns with India's renewable energy goals and benefits from favorable interest rates.
Two government-owned green energy companies in India, National Hydroelectric Power Corporation Limited (NHPC) and NTPC Green Energy, are taking steps to raise capital through bonds as part of long-term investment in renewable energy.
NTPC Green Energy is planning to issue bonds in local currency i.e. rupees for the first time. This will be its first domestic bond sale. According to media reports, NTPC Green Energy is planning to issue bonds worth Rs 2,000 crore to Rs 3,000 crore with a maturity period of the next five or 10 years. Earlier, the company had issued an Initial Public Offering of $1.2 billion in late 2024. But the latest bond sale is considered to be its direct debut entry in the domestic bond market.
This is not a first for NHPC. The company had earlier raised Rs 1,945 crore in May 2025 and is now going to raise another Rs 2,000 crore from short-term (two-three years) bonds.
As India moves towards renewable energy, the demand for long-term investment for wind, solar and hydropower projects is increasing rapidly. In such a situation, companies need large-scale funding. At the same time, since February, the Reserve Bank of India has cut policy rates by 100 basis points, which has increased the availability of cheap loans in the market. Along with this, due to liquidity in the system, investors’ interest in bonds has increased, giving companies an opportunity to raise capital on better terms. At the same time, the credit rating and cash flow of companies remain strong.
According to various media reports, these two government-owned companies are going to raise a combined amount of Rs 4,500 crore from the market in the month of August. Both the companies will raise this capital through short-term bonds under a well-planned strategy, which will not only strengthen their expansion plans but will also ensure financial benefits of the current interest rate structure.
NHPC has planned to raise about Rs 2,000 crore through bonds with a maturity of two to three years and the sale process is likely to begin before NTPC Green. In early May, NHPC had also raised Rs 1,945 crore through specially designed bonds (“Separately Transferable Redeemable Principal Part”) with maturities of six to 15 years.
Media reports quoted experts as saying that short-term bonds are more practical for NHPC in the current monetary environment as the company’s operating cash flow is stable and it can accelerate its growth without taking on long-term debt burden. Raising capital through bonds is an indication that these companies are ready to capitalise on opportunities in the changing financial environment and want stable and long-term investment in India’s energy revolution.
The Indian government has set a target of 500 gigawatts of renewable energy by 2030.