State-owned NLC India Ltd has raised Rs 500 crore through the issuance of commercial papers, the Navratna PSU said in a BSE filing.

The company issued and allotted 10,000 commercial papers of face value Rs 500,000 each on September 22, disclosing the transaction under SEBI listing regulations. Commercial papers are short-term, unsecured debt instruments used as an alternative to costlier funding.

The fundraising comes as NLC India plans to invest Rs 1.25 lakh crore by 2030 to expand capacity. The company currently has installed power-generation capacity of 8,405 MW and mining capacity of 59.1 million tonnes per annum.

NLC India also aims to grow its operational renewable-energy capacity from 1.8 GW to more than 10 GW by 2030 through its green subsidiary, NLC India Renewables Ltd, targeting clean energy at 50 per cent of its generation mix.

Commercial papers have become a preferred short-term funding tool for large PSUs seeking to bridge working-capital needs cheaply. NLC India’s fundraising underscores how state-owned energy firms are tapping debt markets to fund the country’s ambitious capacity-expansion and clean-energy targets.