From correspondents in Delhi, India, 07:30 PM IST

State-run power major NTPC Ltd has signed a Rs.8,500-crore ($1.7-billion) loan agreement with State Bank of India (SBI), the country's largest lender, it was announced here Thursday.

The agreement was signed by NTPC general manager (finance) M. Sinhamahapatra and SBI assistant general manager R.K. Singhala, the power utility, formerly known as National Thermal Power Corp, said in a statement.

The loan would be drawn over a period of three years and be used to fund its upcoming power projects, NTPC said.

The company has approved Rs.17,700 crore for its 2009-10 operations.

NTPC incurred its highest capital expenditure of Rs.12,686.5 crore in 2008-09, almost 45 percent higher than the previous year's Rs.8,751.9 crore.

(Staff Writer, © IANS)