The Government of India receives 618.06 crore bonus debentures amounting to ₹7725.76 crore by virtue of its 74.96% shareholding in NTPC. In addition to the bonus debentures, the Government of India has also received ₹2060.75 crore as dividend distribution tax on the debentures.

NTPC has earlier issued, by way of bonus, one fully paid-up, secured debenture of ₹12.50 each, for every one fully paid-up equity share of ₹10 each held by its members. The issue size of the bonus debenture is of ₹10306.83 crore and is also the biggest issue of its kind in the Country and also the first ever by any PSU. 

The Bonus Debentures carries the Coupon Rate of 8.49% p.a. payable annually and has been allotted.

The need for issuing bonus debentures was felt sometime in July / August 2014. As on 30th March 2014, the company had free reserves of over ₹72000 crores and a cash balance of ₹15300 crore. Since the Company is in regulated generation business, there is little room for improvement of profitability. High net worth of around ₹85000 crore depresses ROE which works out to only around 12.78% on reported basis. Thus there was a need for capital optimization.

Since Company has entered in its 40th year of incorporation, there was no better way to reward the shareholders than issuing Bonus debentures.