BL reported that India Government will consider the follow on public issue for thermal power major NTPC Limited and the proposed initial public offering for state owned hydro power firm NHPC Ltd as and when the market conditions improve.

Mr Anil Razdan Power Secretary said that “There’s no cash crunch now, once the market conditions are conducive they will go for the follow on public issue. He said that NTPC’s follow on public offer and NHPC’s initial public offer will come when the market conditions are conducive.”

NHPC had earlier scheduled the launch of its proposed public float during mid October to raise fresh equity to the tune of over INR 1,600 crore, besides premium.

Meanwhile, NTPC said that it plans to increase up to INR 4,500 crore from domestic as well as international markets for meeting its expansion plans in the current financial year.

Mr RS Sharma chairman & MD of NTPC said that “We plan to increase about INR 2,000 crore in FY 2009 through private placement of bonds and up to USD 500 million through overseas loans.”

As per report, the company also plans to increase INR 2,000 crore from the domestic market through private placement of bonds.

Mr Sharma said that the company aims to increase its capacity to 31,000 MW in 2008-09 from 29,000 MW currently. He said that the company is looking to acquire coal mines in South Africa, Mozambique and Australia.