new delhi staterun power companies will raise nearly 1 billion roughly rs 6400 crore through masala bonds in the uk during this fiscal minister for power coal renewable energy and mines piyush goyal said on fridaymasala bonds are rupeedenominated papers issued by indian corporates in overseas markets to raise funds unlike dollardenominated bonds where the borrower takes the currency risk investors bear the risk in case of masala bondthe ministers statement came in the backdrop of discussions on bilateral energy ties with his uk counterpart greg clark who is also the secretary of state for business and industrial strategy at the meeting both the countries reaffirmed commitment to anchor investments up to 120 million roughly 150 million each in a joint fund which aims to raise around 500 million approximately 620 millionboth sides agreed that the fund will focus its initial investments on indias rapidlygrowing energy and renewables marketspower ministry sources said staterun generation utility ntpc is expected to another rs 20003000 crore to fund capital expenditure the company was the first indian corporate to float green masala bonds in august 2016 for rs 2000 crorepower finance corporation too could be looking at raising another rs 20003000 crore to fund expansion and modernization of the countrys transmission distribution and generation infrastructureother companies looking at offering masala bonds in uk include transmission utility powergrid indian renewable energy development agency solar energy corporation of india and energy efficiency services ltd all of them together could aggregate a mopup of rs 1000 crore or sobut all of this money is not going to be raised at one go these are independent entities and their board decides such issues they will hit the market as when they deem fit a power ministry official saidthe first masala bond was issued by the world bankbacked international finance corporation in november 2014 when it raised rs 1000 crore to fund infrastructure projects in india later in august 2015 ifc issued green masala bonds of over rs 3000 crore to fund private sector projects which address climate change in india hdfc was the first indian corporate to issue masala bond raising rs 3000 crore in july 2016