A STUDY ON FINANCIAL IMPACT OF GREEN BONDS ON CORPORATE SUSTAINABILITY AT NTPC LTD

Abstract

Green bonds have emerged as a pivotal instrument in sustainable finance, enabling corporations and public sector enterprises to raise capital specifically earmarked for environmentally beneficial projects including renewable energy, energy efficiency, clean transportation, and climate adaptation infrastructure. NTPC Limited, India's largest power generation company and a Maharatna central public sector enterprise, has been a pioneer in green bond issuance among Indian power sector companies, raising ₹10,000 crore through multiple green bond tranches to finance its ambitious renewable energy capacity expansion from 7 GW to 60 GW by 2032. This study examines the financial impact of green bond issuance on NTPC's corporate sustainability outcomes, analysing cost of capital effects, investor base diversification, ESG rating improvements, renewable energy capacity addition, carbon emission intensity reduction, and balance sheet implications of green financing. Primary data was collected through structured questionnaires administered to 100 respondents comprising financial analysts, institutional investors, and sustainability professionals. Secondary data was sourced from NTPC Annual Reports (2021–2024), SEBI green bond framework circulars, Climate Bonds Initiative certification records, RBI sustainable finance guidelines, and academic literature on green bond market development. Findings indicate that NTPC's green bond programme has reduced financing costs by 25–40 basis points compared to conventional bonds, attracted 38% new international ESG-focused investors, improved Sustainalytics ESG risk rating from 38.4 to 29.7, and directly financed 4,200 MW of renewable energy capacity addition. Recommendations address green bond framework enhancement, use-ofproceeds reporting improvement, and green bond market deepening strategies.