India’s largest power generation utility had earlier raised Rs.300 crore through these bonds as part of a larger plan of the National Democratic Alliance (NDA) government to raise Rs.5,000 crore for renewable energy.

The power plants can use the subsidy support from the government to buy expensive imported LNG to make up for the fuel deficit.

“Achieving such a huge capex targets is, in itself, a herculean task; exceeding these huge targets for two successive financial years has been an extraordinary achievement of the company. The capex of the company has doubled in the past five years. This should further strengthen shareholders confidence in the ability of team NTPC to achieve its ambitious targets, said Mr.

At 10.45 am, NTPC was trading 2.35 per cent higher at Rs 115.30. It opened at Rs 113 and had touched a high and low of Rs 116 and Rs 113, respectively, in trade so far. Sensex was up 0.14 per cent at 24,929.

A state government source said, “NTPC already has presence in Madhya Pradesh, as they run one of the largest thermal power stations, the Vindhyachal project. It would be better to hand over the Sarni project to them or run it as a joint venture. Much will depend upon their due-diligence. SBI Caps is doing it.” NTPC would not comment.

Under the existing agreement, any state defaulting on dues owed to power companies risks a deduction from its annual transfers; so far this clause has not been invoked as the threat of a deduction has ensured timely payments by SEBs, which are weighed down by $3 trillion in accumulated losses.

Reliance Power (Rs 33) and Adani Power (Rs 20) are trading at lifetime lows, while state-owned power major NTPC is quoting at Rs 107, its lowest level since July 2006.

At 12:24 AM, the stock was trading at Rs 331, its lowest level since February 2014 in intra-day trades.

"Tax Free bonds of NTPC Ltd gets stupendous response... The issue got an overwhelming response and was oversubscribed by 7.25 times across the different tenures," the company said in a statement.

In UP, the state government has joined hands with NTPC to develop a 375 mw solar power park in Jalon district at an estimated cost of Rs 3,000 crore. The state government plans to hand over about 750 hectares to NTPC on a nominal rent for developing the solar park in a phased manner.