NTPC sources said that leading consultants have already approached NTPC in this regard and the final selection will take a minimum of two to three months.

While Price Waterhouse had conducted a similar study three years back, NTPC top brass now feel that in the changed scenario wherein it has planned a couple of significant diversifications, it is pertinent to have a consultant's advice on how to go about these expansions.

Moreover, in the context of these expansions, NTPC's fund requirements will be huge in the coming years and therefore the consultant will also advice NTPC on the modes and means of raising funds from the domestic and international markets.

Meanwhile, the finance cell of NTPC has done an in-house exercise on its future financial growthplan, as per which, the funds requirement for capacity additions of 12,770 mw envisaged by the company, is Rs 44,651 crores.

Out of this, Rs 10,159 crore is in respect of the ongoing projects and Rs 34,493 crore is for the new projects planned by the company.

In order to fund its new projects, NTPC has worked out a financial strategy, as per which 30 per cent of the fund requirements will be met by way of internal resources, 23 per cent through multilateral funding, 19 per cent from Euro bonds, 17 per cent from domestic borrowings and 11 per cent by way of syndication.

As part of direct market borrowings from external sources as well as establish its presence in the foreign capital markets, NTPC has planned a $100 million bond issue in the external markets during 1998-99.

A similar issue has been proposed during 1999-2000.

NTPC also proposes to make syndicated borrowings a regular part of its financing plan for any new project. The power company has successfully finalised about 33 billion Japaneseyen and DM 54 million in 1997-98 at considerably low interest rates for refinancing pre payment of its earlier loans.

In the area of syndication of loans through the foreign banks, NTPC is also exploring the possibility of co-financing alongwith World Bank. This can be done under gurantee operations scheme, offered by the World Bank.

For instance, under this scheme, if the World Bank gives certain loans for part financing the requirements of a project then the balance can be drawn from other sources to which the World Bank will stand guarantees. This option is still being explored by NTPC and the matter will soon be discussed with the World Bank.

On raising funds from the domestic markets, NTPC feels that it can easily collect Rs 1000 crore every year by way of bonds with maturity ranging from seven to ten years.

In addition to this, domestic banks and financial institutions have evinced keen interest in funding NTPC's capacity addition programmes and substantial funds can be raised from thissource.

Whereas, NTPC will continue to pursue with the multilateral agencies, it is however envisaged that compared to the earlier projects, the ratio of borrowings from this source will get reduced substantially with increase in borrowings from the capital markets and banks.