NTPC aims to collect Rs 1,750 crore through the tax free bonds which will open for investment in a fortnight.

According to a news report in The Hindu Business Line, the company is yet to announce the interest rates on the bonds, they are likely to be in the 8.4-8.9 per cent range (depending upon the tenure), similar to what public sector undertakings that tapped the market recently offered.

For investors, the interest income is not taxable throughout the tenure of the bonds.

The bonds may be issued in three tenures — 10, 15 and 20 years. The interest rates offered to retail individual investors will be 0.25 per cent more than for investors in other categories.

The maximum application size for retail individual investors is Rs 10 lakh. Normally, 40 per cent of the total issue size is reserved for retail investors.

The money mobilised through the tax-free bonds will be deployed in infrastructure projects.