India's Damodar Valley aims for 26 bln rupees via bonds-sources

MUMBAI, Oct 9 (Reuters) - Indian state-owned utility Damodar Valley Corp is planning to raise 26 billion rupees ($496 million) via a private placement of 15-year bonds, three sources with knowledge of the deal said on Tuesday.

The bonds will be guaranteed by the Indian government, and the proceeds will be used to grow the business, the sources said.

The utility has invited bond underwriters to submit their bids by Friday, the sources added.

($1 = 52.4700 Indian rupees)

(Reporting by Archana Narayana; Writing by Rafael Nam; Editing by Mark Potter)