Neyveli Lignite Corporation, a government-owned lignite mining company, has decided to raise Rs 1,750 crore through issue of bonds in order to meet capital expenditure requirement for presently running projects.

The directors of the company at its meeting on December 26, 2008 permitted to raise Rs 500 crore by issuing secured non-convertible taxable bonds and Rs 1,250 crore through debt.

The company board has given an in-principle board to raise Rs 500 crore by way of private placement issuing bonds and received in-principle approval to borrow the balance debt portion of Rs 1,250 crore by way of loan and external commercial borrowings in one or more tranches.

Neyveli Lignite is a public sector lignite-based power generation company and currently operates three power generation plants with total capacity of 2,490 mw. The scrip of the company closed today at Rs 71 on BSE, up 3% compared to previous close of Rs 70.