National Hydroelectric Power Corporation Ltd. (NHPC)

Background

National Hydroelectric Power Corporation Limited (NHPC), A Govt. of India Enterprise, was set up on 7th November 1975 with an authorized share capital Rs 2 billion. In its existence for 34 years, NHPC has grown to be the largest organization for hydropower development in India with capabilities to undertake all the activities from conceptualization to commissioning including operation and maintenance of hydropower projects. Later on NHPC expanded its objects to include other sources of energy like Geothermal, Tidal, Wind etc.

At present, NHPC is a Schedule 'A' Enterprise of the Government of India with an authorized share capital of Rs 150 billion. With an investment base exceeding Rs 254 billion. NHPC is a profit making company and among the TOP TEN companies of the country in terms of investment. NHPC has been granted ISO-9001 & ISO-14001 certificates for its Quality Management system and Environment Management system for corporate office.

Initially, on incorporation, NHPC took over the execution of Salal Stage-I, Bairasiul and Loktak Hydro-electric Projects from Central Hydroelectric Project Construction and Control Board. Since then, it has executed 13 power stations with an installed capacity of 6075 MW on ownership basis including projects taken up in joint venture. NHPC has also executed 5 projects with an installed capacity of 89.35 MW on turnkey basis. Two of these projects have been commissioned in neighbouring countries i.e. Nepal and Bhutan.

Presently NHPC is engaged in the construction of 11 projects aggregating to a total installed capacity of 5132 MW. NHPC has added 1970 MW during the 10th Plan period and plans to add 5332 MW during 11th Plan period. About 20 projects of 15166 MW capacity are awaiting clearances/Govt. approval for their implementation.

Profile of NHPC

Projects Completed

13 Nos. (6075 MW)

Projects Under Construction

11 Nos. (5132 MW)

Projects Awaiting Clearances

20 Nos. (15166 MW)

Joint Venture Projects

3 Nos. (2420 MW)

Projects on Turnkey Basis

5 Nos. (89.35 MW)

In 2008-2009
Energy Generated (Including Deemed Generation) 16690 Million Units
Capacity Index 93.61%
Sales Turnover Rs. 2,562 crore (provisional)
Net Profit Rs.1,050 crore (provisional)
Performance Rating Very Good
In 2007-2008
Energy Generated (Including Deemed Generation) 14813 Million Units
Capacity Index --
Sales Turnover Rs. 2,301 Crores
Net Profit Rs. 1,004 Crores
Performance Rating --

In 2006-2007

Energy Generated (Including Deemed Generation)

13048.76 MU

Capacity Index

94.11%

Sales Turnover

19630 Million

Net Profit

9248 Million

Performance Rating

"Excellent" (Expected)

In 2005-2006

Energy Generated (Including Deemed Generation)

12567.15 MU

Capacity Index

98.16%

Sales Turnover

17140 Million

Net Profit

7427 Million

Performance Rating

"Excellent"

In 2004-2005

Energy Generated (Including Deemed Generation)

11286.43 MU

Capacity Index

95.28 %

Net Profit

6845.8 Million

Performance Rating

"Excellent"

In 2003-2004

Energy Generated (Including Deemed Generation)

11045.52MU

Capacity Index

96.82%

Sales Turnover

14140 Million

Net Profit

6213.8 Million

Performance Rating

"Excellent"

 

Generation

Sales v/s Profit

During the period 2006-2007 , NHPC had a sales turnover of 19630 Million with a Net Profit of 9248 Million.

The expertise available with NHPC has been tapped for setting up of Hydroelectric projects in neighboring countries. The 14.1 MW Devighat Project was completed by NHPC in 1984 in record time of three and half years. NHPC has also completed the Nuwakot Rural Electrification project in Nepal covering electrification of 64 villages along with substation and connected lines one year ahead of schedule. The corporation has recently completed works in Kurichu & Kalpong Projects ahead of scheduled including Gelephu-Tintibi-Nanglam transmission line in Bhutan.

Financial Information

Net-worth (1995-96 to 2006-07)

Gross fixed assets (1995-96 to 2006-07)

Net Sales v/s Value Added (2002-03 to 2006-07)

Audited Financial Results for last 10 years

FINANCIAL

2006-07

2005-06

2004-05

2003-04

2002-03

2001-02

2000-01

1999-00

1998-99

1997-98

Sales *

17541

16141

14499

12761

11723

12210

11799

10757

11944

9930

Miscellaneous income @

4333

3595

3938

5517

3029

3304

5757

2026

391

44

Profit before interest, depreciation & Tax $

16100

14547

14389

14773

11534

11835

12097

10707

9992

8491

Profit after interest & depreciation

10877

8122

7775

6435

5550

5131

4842

4012

3053

2994

Profit after interest & depreciation and tax

9248

7427

6846

6214

5105

4709

4434

4012

3053

2994

Dividend

2780

2230

1400

1200

750

500

300

150

150

150

Reserves & surplus (cumulative)

53670

47099

41685

33385

28524

25985

21391

16906

12721

9486

 

Assets

2006-07

2005-06

2004-05

2003-04

2002-03

2001-02

2000-01

1999-00

1998-99

1997-98

Gross Fixed Assets

129436

127555

108763

103427

82809

81135

78927

77527

70904

69036

Depreciation

28509

25278

21482

18829

16722

15267

12801

10290

8111

5986

Net Fixed Assets

100927

102277

87281

84598

66087

65868

66126

67237

62793

63050

Capital Work in progress

113999

88442

87872

69758

70780

57438

43238

27686

25760

20731

Construction Stores & Advances

8564

7789

7701

8055

6217

5255

6130

5115

3228

3320

Investments

33227

38328

37694

34625

25379

19272

6799

-

-

-

Net Current Assets

-3456

-2253

1387

1078

17675

15500

18642

21009

14718

12525

Misc. Expenditure not w/o.

258

245

12

7

12

20

98

19

4

17

253520

234828

221947

200105

186151

158098

134903

121066

106503

99643

Liabilities

Net Worth

- Share Capital

112070

105761

99333

86290

72406

63457

51882

44462

38250

33930

- Reserves

53670

47099

41685

33385

28524

25985

21391

16906

12721

9486

Income received in advance on account of advance against depreciation

12459

10302

10712

9394

8010

6484

5199

3861

2455

1305

Borrowings

75319

71667

70218

68478

75078

62172

56431

55837

53077

54922

253520 234828 221947 200105 186151 158098

134903

121066

106503

99643

 

OPERATING PERFORMANCE

2006-07

2005-06

2004-05

2003-04

2002-03

2001-02

2000-01

1999-00

1998-99

1997-98

Generation (M.U)

13049

12567

11286

11046

9863

8912

8774

8691

9917

8816

Machine availability(%)

94.11

98.16

95.30

96.82

96.62

96.86

92.09

91.05

88.39

83.00

Sales(Rs. in crores)

1754

1614

1450

1276

1172

1221

1180

1076

1194

993

Man power (Nos.)

12768

13118

13470

13648

13017

13054

11850

12150

11860

11799

* Sales are net after tariff adjustment and advance against depreciation

@ Includes receipts against contracts

$ After prior period adjustments

Top

Latest News Items. (Click for More)
PM lays foundation stone of NHPC solar power plant in Bikaner 2/19/2024 12:00:00 AM
 
  • Prime Minister Narendra Modi on Saturday laid the foundation stone of the 300 MW solar power plant in Bikaner, Rajasthan.

  • The project is being set up by NHPC Limited under Government of India’s CPSU scheme, Phase-II, Tranche-III with total investment of over Rs 1732 crore.

  • Equipped with cutting-edge technology, including high-efficiency bifacial modules manufactured in India, the solar project aligns with the Atma Nirbhar Bharat initiative led by Prime Minister Modi. The electricity generated will be transmitted through Bikaner-II ISTS Substation.



 
6 renewable power projects in pipeline, says Gorlosa 2/15/2024 12:00:00 AM
 
  • Power minister Nandita Gorlosa on Monday said in the assembly the power department has taken up various projects to meet the demand and to make the state independent in power generation.

  • He was replying to a question raised by Sivasagar MLA Akhil Gogoi.

  • Assam generates only 17% of the power required on its own and purchases the rest from different sources, including thermal and gas-based power plants.

  • She informed the house that Assam Power Generation Company Limited (APGCL) had planned the construction of six renewable power projects in the state to meet the demand, as well as for economic development, and to help mitigate climate change.

  • The APGCL has targeted to generate over 814 MW of power from the six renewable power projects that are likely to be completed by the end of 2027.

  • In the meanwhile, the minister said two big solar power plants are under construction under Assam Power Distribution Company Limited (APDCL) from where a total of 1320 MW of power is likely to be generated.

  • On the other hand, the APDCL has also planned to set up three more power plant projects in a joint venture with NLC India Renewable Limited, SJVN Green Energy Limited and ONGC Tripura Power Company Limited separately. The govt aims to generate 2250 MW of power from these plants.

  • The minister also told the House that an agreement between the state govt and the NHPC to execute the 2000-MW Subansiri Lower Hydroelectric Project on the Subansiri was made in 2019. She added that Assam will get 25 MW from the project for free and purchase 208 MW.

  • Gorlosa informed the House that the average demand for power last year was 1584 MW and peak-hour demand during summer was 2540 MW.



 
1.44 GW of hybrid wind power and photovoltaic projects commissioned by 2023 in India 2/12/2024 12:00:00 AM
 
  • Renewable Energy Implementation Agencies (REIAs) in India, including Solar Energy Corporation of India, NTPC Ltd., SJVN Ltd. and NHPC Ltd., have floated tenders for several hybrid projects aimed at integrating solar PV and wind energy. These tenders cover hybrid solar-wind projects, projects that guarantee supply during peak hours and Round the Clock (RTC) renewable energy initiatives.

  • As of December 31, 2023, India has made significant progress in renewable energy adoption, with approximately 1.44 GW of wind-solar hybrid projects already operational.

  • The Union Minister of Power and New and Renewable Energy has announced the implementation of the National Hybrid Wind-Solar Policy, effective from May 14, 2018. The main objective of this policy is to facilitate the development of large-scale wind energy connected to the network. hybrid photovoltaic solar energy systems, promoting synergies between these renewable energy sources while minimizing land use and transmission infrastructure.

  • Highlights of the National Hybrid Wind-Solar Policy include:

  • Integration Guidelines: The policy outlines integration methods for fixed and variable speed wind turbines, facilitating their connection to the grid along with solar photovoltaic systems through specific configurations.

  • Capacity criteria: To qualify as a hybrid plant, the nominal power capacity of one energy resource must constitute at least 25% of the nominal capacity of the other resource.

  • Retrofit provision: Existing wind or solar energy projects can retrofit solar photovoltaic plants or wind turbines, respectively, to take advantage of the benefits of hybrid projects, subject to certain conditions.

  • Inclusion of battery storage: Integration of battery storage is recommended to address variability in power output, improve power production, and ensure robust power availability during specific periods.

  • The implementation of the National Hybrid Wind-Solar Policy marks a significant step towards achieving India’s renewable energy goals and fostering sustainable energy development.



 
132KV Ramban to Khellani transmission line charged; Doda, Kishtwar get reliable connectivity 2/5/2024 12:00:00 AM
 
  • Twin districts of Doda & Kishtwar Districts get the first-ever Transmission Line of PDD after 75 years.

  • The transmission line has established connectivity between the 220 kV Grid Station at Ramban and the 132 kV Grid Station at Khellani. The line would also serve as an alternate source of power to the said Districts in addition to the existing 132 kV Single Circuit Udhampur – Dul Hasti Line (UDH Tx Line) owned by NHPC.

  • The UDH Tx Line was established more than three decades ago, during the initiation of the Dul Hasti Project meeting the construction power requirements of the project and local power demand of the Kishtwar area. With the rated transmission capacity of nearly 75 MW, the UDH Tx line has been catering to the power requirements of the twin Districts since then without undergoing any augmentation or upgradation although the load requirement has increased manifold up to 200, necessitating curtailment in both the Districts especially during winters.

  • Moreover, withstanding weather vagaries for decades together, the line has become susceptible to damages, causing frequent and prolonged power outages in the said Districts. Being laid in Radial configuration, and in the absence of any alternate transmission system laid in the area, the Districts were suffering from widespread black-outs affecting the power supply to a consumer base of around one Lakh ten thousand, in case of any faults/breakdowns in the said UDH Tx Line.

  • The new 132 kV double-circuit transmission line laid from Ramban to Khellani, commissioned on 1st February 2024, has a power transmission capacity of 150 MW (each circuit ~ 75 MW), which will increase the overall power transmission capacity for the twin districts by three times. The line will not only contribute to meeting the required power demand of the twin Districts but will also provide an alternate source for supplying power in addition to the existing UDH Tx Line of NHPC. In case of any failure/breakdown in any one of the lines, the power would be supplied from the other line.

  • It is apt to mention that the construction of the 132 kV double-circuit Ramban to Khellani Transmission Line commenced some years back. However, due to various technical issues, the project faced delays and the works were held up. However, recently, with the concerted efforts of the government, all the bottlenecks impeding the construction of the Line were removed/addressed and the works were awarded afresh to Power Grid Corporation of India Limited (PGCIL), a CPSU of the Government of India. PGCIL took up the work on a war footing and commissioned the transmission line ahead of the target, facilitating relief to the public of Doda & Kishtwar by way of enhanced Transmission Capacity.

  • The line will ensure improved reliability of Power Supply to residents of twin Districts. Besides, improving the reliability/ adequacy of construction power requirements of projects, thereby helping to fast-track the development of Power Generation Projects in the Region.

  • It will not be out of place to mention here that the feeding Grids i.e. Khellani (20+50 MVA) are also being augmented to 100 MVA (50 MVA + 50 MVA), the contract of which stands awarded and the other Grid 2×20 MVA Katersamna is shortly being augmented to 70 MVA (20+50MVA) thereby making Doda and Kishtwar Districtsself-sufficient as far as power is concerned and to much relief to the public of these two Districts.

  • Taking this opportunity, the public is hereby apprised that to enhance the robustness of the transmission system, the Government of J&K has accorded approval for the construction of Transmission System worth Rs. 1000 Cr in the coming Financial Year, which includes construction of three major 400 kV & 220 kV level Grid Stations in Jammu Region at Akhnoor, Rajouri and Katra and two Grid Stations in Kashmir Region, at Wahipora and Sallar.

  • Likewise, in the Distribution Sector, the implementation of the Revamped Distribution Sector Scheme (RDSS) is currently underway, which is poised to bring about a complete turn-around in the sector. On the supply side, the Power Purchase Agreements (PPA) Capacity has been doubled ensuring a sufficient share of renewables in the generation mix. This collective effort signifies a substantial stride toward enhancing the resilience and efficiency of the power infrastructure in Jammu and Kashmir, ultimately contributing to the region’s sustained development.



 
Discoms to spend ₹372Cr to buy hydel power in 2024 1/25/2024 12:00:00 AM
 
  • The discoms claim they will have to spend Rs 372.57 crore to buy power from four hydel projects in 2024. They are yet to start operation and major components of one of these projects were washed away in October last year during flash floods in Sikkim.

  • Distribution companies have sought a power tariff hike of 3.8% against a revenue gap of Rs 2046 crore — but of these, a major chunk Rs 1,837 crore is against the actual losses incurred by discoms in year 2022-23 which they have claimed in their true-up petition and only Rs 209 crore is actual revenue gap. However, if estimated expenditures from hydro power stations that are yet to be commissioned and discoms have anticipated that they will start producing power in different months of 2024 is set aside, there will be no actual revenue gap but revenue surplus.

  • Experts say that in the entire petition, discoms have not informed the basis of their anticipation that these hydro power stations will be commissioned in different months of 2024.

  • Discoms have informed that they will spend the amount to buy from NHPC lower Subansiri project, NHPC Teesta project, NHPC Rangit project, and an upcoming hydro project of a private developer. All these upcoming projects are expected to be commissioned from March to October 2024. Of these, the Lower Subansiri project is under construction since 2005 and is one of the biggest hydro projects of the country. The major components of Teesta project were said to be damaged in flash floods in October last year. “The discoms have not mentioned the basis on which they are anticipating the commissioning of these hydro power stations. It would be better that, if the hydro power stations are actually commissioned, then discoms could claim these in the true-up petition later for the financial year. Seeking power tariff hike for anticipated commissioning of projects and then purchase of power from them, was better if avoided,” retired additional chief engineer of MP Genco, Rajendra Agarwal told TOI.



 
Clarification by J&K Govt on Ratle Power Project 1/15/2024 12:00:00 AM
 
  • With reference to the misinformation related to Ratle Power Projects in various newspapers and other media platforms, the point wise rebuttal is given below with facts and figures:

  • In the Union Territory (UT) of Jammu and Kashmir, Hydro Power projects are developed in both State and Central sectors. Out of the existing installed generation capacity of 3500 MW, 1140 MW is contributed by UT-owned plants, including projects like 900 MW Baglihar, 110 MW Lower Jehlum, and 110 MW Upper Sindh. The remaining 2300 MW comes from central sector plants, with prominent ones being Salal, Dul-Hasti, Uri, and Kishanganga.

  • During winters, power houses in J&K, under both central and state sectors, generate a maximum of 600 MW against their rated capacity of 3500 MW due to a fall in water levels in the rivers. However, with the peak demand reaching up to 3200 MW in winters, it becomes evident that J&K's power demand cannot be solely met by hydroelectric power plants.

  • Out of J&K’s own power houses, a major portion of electricity generation is from the Baghliar Hydro Electric Project (BHEP), producing approximately 900 MW. Other locally owned power generation plants, including Upper Sindh, Lower Jehlum, Chennani, etc.,collectively generate around 200-250 MW.This totals approximately 1100-1140 MW through UT’s own generating stations, which drops to around 200 MW in winters. The remaining power requirement during winters is met through Central Generating Stations (CGS) both within and outside J&K.

  • Of the total installed capacity of 1140 MW in the UT sector, a major share of around 1030 MW (88% of total capacity) is utilized in J&K, while the remaining 150 MW is sold outside J&K, honouring agreements executed in 2009, initially through PTC, later bilaterally with Haryana.

  • In the existing situation, J&K requires more power from thermal generators to meet its base load requirement. Solar generation could provide balancing support to hydro plants to some extent. The Government of India has set Renewable Purchase Obligation (RPO) targets, making it mandatory for every State/UT to procure some quantum of hydro and solar power to meet a proportion of power demand. J&K, being a hydro-rich state, has to rely on thermal power, particularly during winters, to meet the base load demand. As such arrangements are being made to bank hydro with other states in exchange of thermal power whenever there is surplus situation.

  • Over the last four years, J&K has not signed any Power Purchase Agreements (PPAs) for selling power outside J&K from its power houses; the same quantum has been maintained as per previous PPAs. In contrast, new PPAs have been signed to procure power to the tune of 3000 MW for J&K, including 900 MW of hydro from under construction Joint Venture (JV) projects namely Pakal Dul, Ratle, Kiru and Kwarof Chenab Valley Power Projects(CVPP) and 1600 MW of solar power from different CPSUs at a nominal price in2023. Recently, UT Administrative Council has accorded procurement of 500 MW of firm power from thermal generators for which the PPA signing is in process. This doubles the capacity/availability of power to J&K in the coming years.

  • As regards to under construction JV projects of CVPP (with 51% stakes held by NHPC and 49% by J&K Government ), the projects are being developed through Debt-Equity modelin the ratio of 70:30 at total cost of 22200 Cr. J&K's equity contribution comes as grants from the Ministry of Home Affairs (MHA), while the debt portion is secured through loans from banks.

  • For raising the necessary loans its essential for the CVPP to execute advance PPAs for selling power post-commissioning of the projects. The tariff for the sale of power is assessed through established procedures and determined by the Central Electricity Regulatory Commission (CERC).

  • The tariff of the said CVPP projects ranges between Rs. 3.92 to 4.64 per unit. J&K’s has signed PPAs for 900 MWs of power from the said projects, considering the additional requirement of Hydro-based power in the existing power portfolio and the pricing, while for the remaining quantum, the CVPP has signed PPAs with other States.

  • 2. In terms of tariff charges, Jammu and Kashmir offers one of the lowest tariff rates to its consumers in various categories, underscoring its commitment to providing affordable electricity to its residents.During the current financial year, the electricity duty on the power has also been withdrawn.

  • 3. One significant challenge is that only 55% of consumers have electricity meters installed at their houses, while power consumption often exceeds the agreed loads by the consumers. It is pertinent to mention here that the Indian Electricity Act mandates the supply of power through meters only. Therefore, the department encourages consumers to install meters at their residences, pay based on consumption, and avoid flat-rate billing.



 
CERC’s Draft Power-Tariff Review Regulations: A Boost for India’s Power Sector 1/10/2024 12:00:00 AM
 
  • India’s power sector is set for a boost as the Central Electricity Regulatory Commission (CERC) drafts power-tariff review regulations aimed at supporting new investments and maintaining entity credit profiles. According to S&P Global Ratings, these changes, slated to start from FY25, will continue to support regulated returns with full cost pass-through.

  • Regulatory Changes and Their Implications

  • The CERC has proposed keeping the return on equity for thermal power units at a consistent 15.5%. However, there is a slight reduction in the cards for new transmission projects commissioned post-April 2024. The return on equity for these projects is expected to drop to 15% from the current 15.5%. Despite this reduction, S&P analyst Rachna Jain assures that the change will not significantly impact project earnings. The projected decrease in earnings after tax is a mere 3%, with only about a 1% reduction in EBITDA.

  • It’s important to note that most transmission projects in India are awarded through tariff-based competitive bidding. Therefore, companies like the Power Grid Corp of India, NTPC, and NHPC will continue to benefit from the stable, availability-based regulatory rate of return. This rate provides a strong cash-flow predictability, an inherent advantage of the sector.

  • Encouragement for New Projects

  • Furthermore, the CERC’s proposal plans to increase the return on equity for new storage-type and pumped-storage hydro power projects to 17%. This increase is designed to reflect the risks associated with these projects and to encourage further investment in the sector.

  • Thermal projects are also set to receive an extra incentive income of 1% of annual fixed-revenue requirements. On the other hand, hydro generation projects will see a 4% increase. In addition, thermal assets will receive a higher peak-period incentive, adding to their profitability.

  • Protection Against Inflation

  • The CERC’s draft also includes a mechanism to mitigate inflation risk. The commission assumes a 6% annual increase in operation and maintenance expenses over the next five years, a move designed to shield the sector from the detrimental effects of inflation. This increase is higher than the 4% to 5% increase seen in the previous period.

  • This regulatory framework, which has long supported regulated assets, is expected to continue its supportive role, thereby nurturing growth and stability in India’s power sector. The public can submit comments, suggestions, or objections to the draft by February 10, 2024, and the new regulatory norms will come into force from April 01, 2024.



 
NHPC to invest Rs 4,000 crore in Gujarat pumped storage project 1/9/2024 12:00:00 AM
 
  • A prominent entity in the hydropower industry, NHPC, plans to allocate a substantial investment of Rs 4,000 crore towards the Kuppa pumped hydro storage project in Gujarat. During the Vibrant Gujarat Summit in Gandhinagar, this investment commitment was formally established via a memorandum of understanding (MoU) executed with Gujarat Power Corporation (GPCL).

  • The planned undertaking in Chhota Udaipur, Gujarat, is anticipated to possess a capacity of 750 MW. The state government and the company have formed a partnership with the dual objective of developing a productive energy storage system and stimulating regional economic expansion through the creation of substantial employment prospects.

  • This strategic programme supports the national goals of 500 GW of renewable energy by 2030 and net-zero emissions by 2070. Anticipated outcomes include a significant contribution to the achievement of these expansive national goals through the effective execution of this endeavour.

  • The company manages 7,097.2 MW of renewable energy, including wind and solar, through 25 power stations, including 1,520 MW from subsidiaries. At present, the company is involved in the active development of fifteen projects, which collectively have an installed capacity of 10,449 MW.

  • The Kuppa pumped hydro storage project represents the company’s strategic investment in Gujarat and a regional endeavour to promote sustainable energy, employment, and economic growth.



 
NC asks J-K admin to come clean on leasing electricity from Ratle Power Project to Rajasthan 1/8/2024 12:00:00 AM
 
  • The National Conference on Friday asked the Jammu and Kashmir administration to come clean on leasing electricity from the Ratle Power Project to Rajasthan. National Conference (NC) spokesperson Imran Nabi Dar said the administration needs to clear the air on the agreement between Jammu and Kashmir State Power Development Corporation (JKSPDC) and Rajasthan Urja Vikas and IT Services Limited as it has created a lot of "misgivings" among the people here.

  • Dar said the agreement has stirred a "hornet's nest" as the terms and conditions on the face of it are seemingly to the "disadvantage" of Jammu and Kashmir. "Normally, power purchase agreements usually last for a maximum of 20 years. However, in this case, they are signing it for 40 years at a pre-negotiated price which is also unknown. There has been a feeling of betrayal amongst the people of J-K that their resources are being bartered away," he said in a statement.

  • The NC spokesman said the fresh agreement for off-take of electricity for a period of 40 years from the commercial operation by Rajasthan Urja Vikas and IT services has further added to the "looming skepticism".

  • He added that the administration "should bring out a white paper on the agreement informing people about its underlying purpose and what benefits will J&K reap from it".

  • Dar said that the administration should have prioritised providing electricity to the domestic consumers firstly as the "looming energy crises being severely felt across J&K was far from over".

  • "For electricity-starved people of J&K, is this agreement a solution?" he asked.

  • Asserting it is a question that the administration "has to answer", the NC spokesman said "it makes no sense that at a time when J&K is grappling with electricity crisis", the administration is "selling out electricity to other states".

  • Ratle Hydro Electric Power Corporation Limited (RHPCL), a joint venture company of the NHPC Limited and JKSPDC, has entered into a Power Purchase Agreement (PPA) with Rajasthan Urja Vikas and IT Services Limited for off-take of power generated from 850 MW Ratle Hydroelectric Project, Kishtwar.

  • The agreement has been signed for off-take of power for a period of 40 years from the Commercial Operation Date (COD) of the project and as per power allocation to be notified by the Ministry of Power, Government of India.

  • The PPA was signed in Jaipur on January 3 in the presence of senior officers of the RHPCL and Rajasthan Urja Vikas and IT Services Limited.



 
Union Min to review royalty issues in power projects: Himachal govt 1/8/2024 12:00:00 AM
 
  • Union power minister RK Singh has agreed to review the issues related to royalty in power projects on the request of Chief Minister Sukhvinder Singh Sukhu, a statement issued here on Friday said. Sukhu called on the Union Minister for Power, New and Renewable Energy and held deliberations about protecting the interests of the state due to the revenue losses likely to be incurred due to deferred royalty in the power projects executed by Satluj Jal Vidyut Nigam Limited (SJVNL) and National Hydro Power Corporation (NHPC) in the state.

  • The chief minister also requested that power projects should come back to the state after forty years. Earlier, the state government had partially amended the energy policy and said that power projects shall give 20 per cent, 30 per cent and 40 per cent royalty to the state for the first 12 years, the next 18 years and the remaining 10 years. The project would revert to the government thereafter, free of cost and free from all encumbrances and liabilities.

  • The Union Minister agreed in principle that the state should get at least 12 per cent minimum royalty and suggested a review of royalty and all other points of concern of the state government by the team of officers from both sides, with the Central Electricity Authority as an independent authority so that the state could get its fair share.

  • He agreed to complete the review by January 20, the statement added.

  • The Chief Minister requested to enhance the installation of smart meters in the state in a phased manner, besides improving the time limit for installation and not linking the same as a precondition for releasing funds for strengthening power infrastructure. The Union minister agreed to the same, as per the statement.



 
Ratle Hydro Power to supply electricity to Rajasthan Urja Vikas and IT Services 1/5/2024 12:00:00 AM
 
  • Ratle Hydro Power Corp has entered into an agreement with Rajasthan Urja Vikas and IT Services Ltd to supply electricity from its 850 MW power plant in Kishtwar in the Union Territory of Jammu & Kashmir, according to a statement.

  • The Ratle Hydro Electric Power Corporation Ltd (RHPCL) is a joint venture company of state-owned NHPC Ltd and Jammu and Kashmir State Power Development Corporation (JKSPDC), a power ministry statement said.

  • According to the statement, the agreement has been signed for offtake of power for 40 years from the commercial operation date of the project and as per power allocation to be notified by the Ministry of Power.

  • RHPCL has entered into Power Purchase Agreement (PPA) with Rajasthan Urja Vikas and IT Services Ltd, for offtake of power generated from 850 MW Ratle Hydroelectric Project, Kishtwar in Jammu & Kashmir, the statement said.

  • The PPA was signed in Jaipur on Wednesday in the presence of senior officers of RHPCL & Rajasthan Urja Vikas and IT Services Ltd.



 
NHPC pledges to invest Rs 4,000 crore in 750 MW Kuppa Hydro Storage Project in Gujarat 1/5/2024 12:00:00 AM
 
  • NHPC has inked an initial pact to invest Rs 4,000 crore in 750 MW Kuppa Pumped Hydro Storage Project at Chhota Udaipur in Gujarat. Taking a step towards clean and green energy, NHPC signed a Memorandum of Understanding (MoU) with Gujarat Power Corporation (GPCL) for investment in Kuppa Pumped Hydro Storage Project (750 MW) on January 3, 2024, a company statement said.

  • According to the statement, the MoU was signed at an event organised at the Secretariat in Gandhinagar under the aegis of 'Vibrant Gujarat'.

  • In the presence of Gujarat Chief Minister Bhupendra Patel, and state Energy Minister Kanubhai Desai, the MoU was signed by Arun Mahesh Babu, Managing Director, GPCL, and V Srivastava, Executive Director, Renewable Energy and Green Hydrogen, NHPC, the statement said.

  • As per the terms of the MoU, the NHPC shall invest an estimated Rs 4,000 crore in the proposed 750 MW Kuppa Pumped Hydro Storage Project at Chhota Udaipur, Gujarat.

  • The implementation of this project will create significant employment opportunities and boost the local economy in the area, the statement said.

  • The NHPC Ltd is India's leading hydropower company with a total installed capacity of 7,097.2 MW of renewable energy through its 25 power stations, including 1,520 MW through subsidiaries.



 
Arunachal Pradesh govt, THDCIL inks MoA for 1,200 MW Kalai-II hydroelectric project 1/3/2024 12:00:00 AM
 
  • The Government of Arunachal Pradesh has signed a memorandum of agreement (MoA) with Tehri Hydropower Development Corporation India (THDCIL) for developing the 1,200 MW Kalai-II hydroelectric project in the Lohit river basin. The project will bring in investment of over Rs 13,000 crore in the state during its construction phase, and would further create development and employment opportunities in the area.

  • With this, the state has concluded MoAs for 13 projects with a total capacity of 12,717 MW in the calendar year. The project will be developed in partnership with the state government which will have a 26 percent equity share.

  • Kalai-II project, which was initially allotted to an independent power developer in 2009, had remained stalled for various reasons. With the efforts of the Central and the state government over the last two years, and the subsequent award of this project to THDCIL will help restart its execution. This is the first project to be allotted to a central PSU in the Lohit basin and is also the first project to be taken up by THDCIL in the state.

  • Chief Minister Pema Khandu has asked all the stakeholders to implement the project in a mission mode, while saying that the state is committed to ensuring full development of the hydropower potential for meeting the energy security of the country.

  • Earlier, the state government had signed MoAs with three central PSUs, NHPC, SJVN and NEEPCO for developing 12 hydropower projects with a combined capacity of 11,517 MW to be developed in Subansiri, Dibang and Siang basins.



 
JK Inks Record 3250 MW Power Deals, Yet Struggles with Outdated Power Grid 12/29/2023 12:00:00 AM
 
  • As the fiscal year 2023 concludes, authorities in Jammu and Kashmir have inked multiple Power Purchase Agreements (PPAs) totalling 3250 Megawatts. However, despite this significant development, the Power Development Department (PDD) clings to its obsolete 40-year-old infrastructure.

  • Principal Secretary, PDD, H Rajesh Prasad said, “In 2023, we finalised Power Purchase Agreements (PPAs) for 3250 Megawatts under NHPC, NTPC, and Solar Electric Power Corporation, including 1600 MW of solar energy, surpassing the cumulative achievements of the past 70 years.”

  • This agreement is in addition to the existing power availability that Jammu & Kashmir currently has, he said, adding that this PPA is a supplement for the Union Territory because of the usual power shortage, especially during winter.

  • “2023 marks a historic period for power availability and procurement. This year, we have also outlined power demand and procurement strategies – of short-term, medium-term, and long-term – for the next 15 years,” Prasad said.

  • However, despite these advancements, the PDD continued to grapple with its outdated infrastructure, a major impediment to ensuring uninterrupted power supply.

  • An official document revealed, “The replacement of existing old and outdated elements of the distribution network has not been adequately addressed, with many components continuing for over 40 years after repeated repairs.”

  • It reveals that the electricity demand in J&K is primarily met through hydel power, which, however, varies with seasons, thereby causing a power deficit mainly during winter when power demand surges high.

  • The document further mentions that the replacement of existing old and outdated elements of the distribution network has never been given due consideration, many of which therefore continue in the system for more than 40 years after repeated repairs.

  • Jammu & Kashmir harnesses only 3504.90 MW of power, significantly below its potential of 20,000 Megawatts in hydel power generation, leaving as much as 16500 MW of the identified potential yet to be tapped, as outlined in the ‘JK Vision Document 2047’.

  • Prasad assured, “In 2023, we implemented significant measures for a complete turnaround in the power sector, focusing on making it robust, reliable, and affordable. We acknowledge power curtailment issues, reliability concerns, and substantial losses in the sector, prompting us to upgrade the infrastructure.”

  • The issue of metering also surfaced, with more than half of electricity consumers in the Kashmir valley lacking meters in 2023, which contributes to high Aggregate Technical and Commercial (AT&C) losses.

  • The Principal Secretary PDD informed, “This year, we successfully installed four lakh smart consumer meters, a substantial leap from the previous year’s one lakh. Our goal is to install over 22 lakh smart meters by 2024-25 for accurate billing based on consumption.”

  • Highlighting ongoing efforts, he said, “To replace old distribution transformers, under the Centrally-sponsored scheme RDSS, projects worth Rs 5650 crore have been awarded, with most nearing completion within two years.”

  • Despite these strides, the AT&C losses in Jammu & Kashmir remain a concern, which stands at 50 per cent above the national average of 19.73 per cent. This is one of the highest in India, causing a gap between power purchase costs.

  • As per the official document, the AT&C losses of the J&K Power Development Department are one of the highest in the country. (KNO)



 
J&K to receive addl 1036 MWs power until March 2024: Official data 12/22/2023 12:00:00 AM
 
  • The Jammu and Kashmir Union Territory is set to receive an additional 1036 MWs of power until March 2024, following the allocation of 393 MW in December 2023.

  • According to official data, this brings the cumulative allocation to an impressive 3184 MW. As of November 2023, 2791 MW of power has been allocated to the Union Territory (UT) of J&K from Central Generating Stations. Additionally, the Ministry of Power has made extra allocations to help meet the heightened power demand during the winter months. The recent allocations include 393 MW for December 2023, 443 MW for January-24 & February-24, and 593 MW for March-24.

  • The document highlights the launch of four hydroelectric projects in J&K since 2019, totaling a capacity of 2026 MW. These projects include Kiru (624 MW), Ratle (850 MW), Kwar (540 MW), and Karnah (12 MW). The data also reveals a significant reduction in the energy deficit in J&K, from 17.8% in 2018-19 to 1.5% as of November 2023.

  • The focus on hydropower development in Jammu and Kashmir has been a joint initiative between the Government of India and the UT administration. An MoU signed on January 3, 2021, between the J&K government and NHPC paved the way for the development of three projects – Uri (240 MW), Dulhasti (258 MW), and Sawalkote (1856 MW) – with a total installed capacity of 2354 MW.

  • The document mentions the creation of the Rattle Hydro Power Development Corporation Limited, a joint venture between NHPC and JKPDC, for the development of the 850 MW Rattle Hydroelectric Project, expected to be commissioned by May 2026.

  • Chenab Valley Power Projects [P] Ltd. (CVPPPL) is entrusted with the construction of four projects on a Build, Own, Operate, and Maintain (BOOM) basis, with a total installed capacity of 3094 MW. Meanwhile, JKSPDC, an undertaking of J&K, has identified 14 projects with an aggregate installed capacity of 738.5 MW.

  • Similarly, 93 MW New Ganderbal and 48 MW Lower Kalnai HEPs is at advanced stage of tendering while as another project namely 390 MW Kirthal-ll is at the appraisal stage by Central Electricity Authority, it added.

  • It further revealed that around 7000 MW of hydro power capacity is expected to be added in a phased manner over the next 8 to 10 years. This development is anticipated to have a significant impact on J&K's overall economic development, including employment generation in economically backward areas.



 
Hydropower mega-merger of NHPC, two others put on hold 12/19/2023 12:00:00 AM
 
  • The government has deferred an ambitious plan to merge three state-run hydropower companies into one, two people aware of the matter said.

  • NHPC Ltd had made a proposal to the power ministry recently to merge THDC India Ltd and North Eastern Electric Power Corp. Ltd (Neepco) with itself, the people said on condition of anonymity.

  • The plan was to bring together their diverse experience to boost hydropower and provide uninterrupted electricity when solar power is unavailable. NHPC has experience working in remote areas, THDC has expertise in building large projects, and Neepco is focused on the north-eastern region.

  • “NHPC had submitted its report proposing the merger and the matter was discussed in the ministry. The ministry also has to take clearance from Dipam (Department of Investment and Public Asset Management), which had taken a decision a few years ago to transfer shares of THDC and Neepco to NTPC. To reverse this decision now would be difficult. So, for now, it’s on hold," one of the two people cited above said.

  • NHPC chairman and managing director Rajeev Kumar Vishnoi, who also heads THDC, told Mint in May that the merged entity may have a market capitalization of around ₹70,000 crore. The market cap of NHPC, the largest of the three, which was around ₹44,157.97 crore at the time, has since grown to ₹66,377.59 crore.

  • Replying to a query from Mint, an NHPC spokesperson, however, said on Monday: “There is no concrete proposal under consideration by the management of NHPC for the merger/acquisition of THDC and Neepco with NHPC Ltd."

  • Queries sent to the power ministry, NTPC, Neepco and THDC remained unanswered till press time.

  • Earlier this year, power minister R.K. Singh had said the government is considering a merger of public sector hydropower companies to improve efficiency and reduce costs.

  • In August, Moneycontrol reported that NHPC would need at least ₹11,000 crore to acquire THDC India and Neepco.

  • Both THDC and Neepco are currently owned by state-run thermal power major NTPC. In March 2020, NTPC had acquired the Centre’s stake in the two companies for about ₹11,500 crore.

  • NHPC’s total installed capacity as on 30 September was 7,097.20MW (including 1,546MW in joint ventures), comprising 6,971.20MW from 22 hydropower stations, 76MW from two solar power projects and 50MW from a wind power project.

  • NHPC’s hydro capacity is about 13.4% of the country’s total installed hydro capacity of 52GW.

  • NHPC has ambitious plans in the growing pump storage projects (PSP) segment, with planned investments of up to ₹1.76 trillion for storage capacities of 20,000-22,000MW. It has signed agreements in states including Odisha and Maharashtra for setting up PSPs.

  • THDC was set up to develop, operate and maintain the 2,400MW Tehri hydropower complex and other hydro projects. However, it currently operates several projects.

  • Incorporated in 1976 to plan, construct, operate and maintain power stations in the north eastern region, Neepco operates one solar, six hydro and three thermal power stations with a combined installed capacity of 2,057MW.

  • The decision to hold the proposal to merge the three entities also comes at a time when the government is reworking its draft hydropower policy.

  • That is because the Prime Minister’s office has directed the power ministry to carve out the ₹4,000 crore grant for the north-eastern states to pick up stake in hydro projects as a separate scheme, and come up with a wholesome policy with more incentives.



 
NHPC board to consider monetisation of power projects' future cash flow on Dec 22 12/19/2023 12:00:00 AM
 
  • State-owned hydro power major NHPC Limited on Monday said its board will consider a proposal regarding monetisation of future cash flow of one or more power stations to fund capital expenditure. The meeting will be held on December 22.

  • In a regulatory filing, the company said its board "may inter-alia consider the proposal regarding monetisation of future cash flow (consisting return on equity) of one or more power station(s) of the company for suitable tenure, as part of the funding plan of capex of the company for the current financial year 2023-24 or beyond."

  • As on September 30, the company's total installed capacity stood at 7,097.20 MW, including 1,546 MW in joint ventures. It has also diversified into wind and solar segments.

  • The NHPC, including its joint ventures and subsidiaries, is engaged in the construction of 15 projects, aggregating to a total installed capacity of 10,449 MW.

  • The NHPC has 13 projects aggregating to a total installed capacity of 4,847 MW at clearance stage.



 
Centre Redrafting Hydro Power Policy 12/13/2023 12:00:00 AM
 
  • The power ministry is reworking its planned hydro power policy in order to carve out a ₹4,000 crore grant for North-eastern states as a separate scheme, said two people aware of the developments.

  • The initial draft included the grant for North-eastern states to take up equity in hydro projects and provide the required investment.

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  • The decision to revise the policy was taken after the prime minister’s office (PMO) asked the ministry to come up with a pure play policy and roll out the incentive for North-eastern states as a separate scheme, said one of the two persons.

  • The Central Electricity Authority is working on the revised draft and is likely to release it soon.

  • “Comments were received on the first draft. Earlier the scheme of giving assistance to North-eastern states was included in the policy. But the PMO suggested we draft a separate scheme for North-eastern states, and the policy should be a pure policy. Both the documents will be different. A draft is being prepared for the pure policy; CEA is working on it," the person added.

  • On 2 July, Mint had reported that the new hydropower policy is expected to provide a ₹4,000 crore grant to the states to help them pick up equity in hydro projects.

  • The other person said the policy will include budgetary support for building infrastructure for hydro power projects, including roads and transmission lines.

  • “The policy will deal with how to encourage hydro. There will be separate incentives," he said.

  • Queries mailed to the ministry of power and prime minister’s office remained unanswered at press time.

  • The Economic Times had earlier reported that under the policy, the power ministry has proposed a ₹16,000 crore outlay for hydro power projects including the grant for North-eastern states to pick up equity stakes. The hydropower push comes in the backdrop of India’s ambitious energy transition plans and the need to protect its lower riparian rights as China works to dam the upper reaches of the Brahmaputra.

  • India has a hydropower capacity of 52 gigawatts (GW) with another 18GW either in the implementation stage or bid out. Out of a target of 500GW installed renewable energy capacity, hydropower is expected to make up 78GW.

  • Late last year, state-run NHPC Ltd submitted a pre-feasibility report to the CEA for the 11GW Upper Siang Multipurpose Storage project at a capital expenditure of ₹1.13 trillion that will be the largest hydropower project in the country.

  • This, along with other hydro projects on the Brahmaputra, known as Siang in Arunachal Pradesh, is part of India’s attempt to counter China’s water diversion. The northern neighbour has been building a number of dams upstream of the Brahmaputra.

  • Hydropower is key for India’s energy transition as solar and wind are intermittent.

  • The power ministry is reworking its planned hydro power policy in order to carve out a ₹4,000 crore grant for North-eastern states as a separate scheme, said two people aware of the developments.

  • The initial draft included the grant for North-eastern states to take up equity in hydro projects and provide the required investment.

  • The decision to revise the policy was taken after the prime minister’s office (PMO) asked the ministry to come up with a pure play policy and roll out the incentive for North-eastern states as a separate scheme, said one of the two persons.

  • The Central Electricity Authority is working on the revised draft and is likely to release it soon.

  • “Comments were received on the first draft. Earlier the scheme of giving assistance to North-eastern states was included in the policy. But the PMO suggested we draft a separate scheme for North-eastern states, and the policy should be a pure policy. Both the documents will be different. A draft is being prepared for the pure policy; CEA is working on it," the person added.

  • On 2 July, Mint had reported that the new hydropower policy is expected to provide a ₹4,000 crore grant to the states to help them pick up equity in hydro projects.

  • The other person said the policy will include budgetary support for building infrastructure for hydro power projects, including roads and transmission lines.

  • “The policy will deal with how to encourage hydro. There will be separate incentives," he said.

  • Queries mailed to the ministry of power and prime minister’s office remained unanswered at press time.

  • The Economic Times had earlier reported that under the policy, the power ministry has proposed a ₹16,000 crore outlay for hydro power projects including the grant for North-eastern states to pick up equity stakes. The hydropower push comes in the backdrop of India’s ambitious energy transition plans and the need to protect its lower riparian rights as China works to dam the upper reaches of the Brahmaputra.

  • India has a hydropower capacity of 52 gigawatts (GW) with another 18GW either in the implementation stage or bid out. Out of a target of 500GW installed renewable energy capacity, hydropower is expected to make up 78GW.

  • Late last year, state-run NHPC Ltd submitted a pre-feasibility report to the CEA for the 11GW Upper Siang Multipurpose Storage project at a capital expenditure of ₹1.13 trillion that will be the largest hydropower project in the country.

  • This, along with other hydro projects on the Brahmaputra, known as Siang in Arunachal Pradesh, is part of India’s attempt to counter China’s water diversion. The northern neighbour has been building a number of dams upstream of the Brahmaputra.

  • Hydropower is key for India’s energy transition as solar and wind are intermittent.



 
Meeting held to discuss power sector issues in N-E; all states take part 12/11/2023 12:00:00 AM
 
  • A meeting, chaired by Deputy Chief Minister of Arunachal Pradesh, Chowna Mein, who is also the chairman of North Eastern Regional Power Committee (NERPC), was held where critical issues in the power sector, focusing on the challenges and opportunities for progress in the northeastern region were discussed.

  • The meeting was organised and hosted by NTPC Ltd and NERPC Secretariat in Kolkata on Saturday.

  • During the session, NERPC chairman and Arunachal deputy chief minister Mein highlighted the significance of collective efforts toward a more promising and sustainable future in the power industry.

  • As per a release issued after the meeting, the discussions resulted in crucial decisions aimed at advancing the growth of the power sector in the northeastern region, ensuring a consistent electricity supply, and enhancing the standard of living for residents.

  • Deputy CM Mein emphasised key initiatives, showcasing a commitment to power sector preparedness.

  • Proactive measures, such as the installation of surge arresters and the reconductoring of transmission lines to High-Temperature Low Sag (HTLS), were underscored in his speech. Mein also announced the finalization of the Guwahati Islanding Scheme, planned by NERPC under the Ministry of Power's directive.

  • He urged stakeholders to expedite the implementation of this scheme and explore the feasibility of similar Islanding Schemes for other capitals of northeastern states.

  • Expressing his gratitude for the support extended by the Ministry of Power, Mein thanked for the approval of full funding, covering 100 per cent of the costs, for the Supervisory Control and Data Acquisition/ Energy Management Systems(SCADA/EMS) upgradation across all State Load Dispatch Centers (SLDCs) in the northeastern region.

  • "This significant project, with an estimated budget of approximately Rs. 80 crore per state, marks a substantial advancement in bolstering the power infrastructure of the region," the release stated.

  • Addressing the challenges in commissioning hydro projects, Mein encouraged project developers to adopt innovative and environmentally friendly designs, aligning with India's non-fossil energy capacity targets.

  • He commended the Arunachal Pradesh government for signing MoUs for the development of 12 Hydro Projects with NHPC, SIVN, and NEEPCO.

  • Recognising the unique challenges of the northeastern region, including geographical constraints and adverse weather conditions, Mein affirmed the NERPC forum's pivotal role in collective problem-solving.

  • He highlighted the Revamped Distribution Sector Schemes (RDSS) aimed at reducing Aggregate Technical and commercial (AT&C) losses and urged Distribution Companies (DISCOMS) and State governments to prioritise settling outstanding bills for sustainable business operations.

  • He also initiated the formation of the Power Ministers' Forum for the North Eastern Region for effective persuasion of issues in the power sectors in the region.

  • The meeting was also attended by Ministers of Power from North Eastern States; Nandita Gorlosa of Assam, Abu Taher Mondal of Meghalaya, Ratan Lal Nath of Tripura, K.G. Kenye of Nagaland, Advisor to Power(Arunachal), Balo Raja, Member Secretary (NERPC), Kishore B Jagtap, Director (Finance) NTPC Ltd, Jaikumar Srinivasan, officers of the central and state governments and representatives from central and state power utilities.



 
BHEL: Diversifying into new high-growth segments 12/7/2023 12:00:00 AM
 
  • Bharat Heavy Electricals Limited (BHEL), the country’s largest engineering and manufacturing company, continues to maintain a strong foothold in the Indian power sector. BHEL holds nearly 55 per cent share of the country’s total installed thermal capacity for utility-scale power projects, 48 per cent of the nuclear power generation capacity and 44 per cent of the hydropower generation capacity in the country by the end of 2022-23. BHEL-supplied sets contributed 60.6 per cent to the country’s total generation from coal and lignite-based utility sets.

  • In the past fiscal year, 2022-23, BHEL’s accomplishments spanned a variety of projects and orders, from substations and AIS bay extensions to the successful initiation of supercritical steam generators and turbine generators. Another highlight for the company was the substantial capacity expansion in utility power projects, constituting 100 per cent of the country’s total commissioning for thermal, hydro and nuclear sets during the period.

  • BHEL has been diversifying into other segments in recent years and is working on a long-term target to derive at least 50 per cent of its business from non-coal sectors. The company achieved some no­table successes in this area in the past year, with the industry segment order book going up to 40 per cent of the total order bookings, including the highest highest-ever orders in the defence sector. Further, the company is focusing on other high-growth segments such as carbon capture, coal gasification and green hydrogen.

  • Orders won

  • During 2022-23, the company secured orders worth Rs 235.48 billion, (excluding taxes) which is the highest in the past five years. As of March 2023, BHEL’s total outstanding order book, net of ta­xes, stood at Rs 913.36 billion, a slight increase, from that in the previous year, of Rs 900.84 billion.

  • A major highlight for the company during 2022-23 was the winning of the only thermal engineering, procurement and construction (EPC) order to be awarded in the past four years in the thermal power segment for the 2×660 MW Talcher thermal power plant from NTPC.

  • More recently, in August 2023, BHEL se­cured a Rs 40 billion order from Ma­han Energen Limited for the 2×800 MW supercritical power project in Madhya Pradesh. Simultaneously, BHEL secured another order from NTPC Limited for the 2×800 MW Lara supercritical thermal power project Stage II in Chhattisgarh.

  • In September 2023, BHEL secured an order from NHPC Limited for electro-mechanical works of the 2,880 MW Dibang multipurpose project in Aruna­chal Pradesh.

  • During 2022-23, various renovation and modernisation projects were also secur­ed by BHEL. The company secured orde­rs totalling 2,400 MW in the power sector, amounting to Rs 133.53 billion. No­tably, the spares and services business, with a growth of about 25 per cent, reached its highest-ever order booking of Rs 38 billion. Significant orders inclu­ded EPC contracts for thermal and hy­dropower projects, heat rate (efficiency) improvement projects and life extension projects for steam turbines. In January 2023, BHEL secured a Rs 3 billion order from Gujarat State Electricity Corpora­tion Limited (GSECL) for renovating and modernising steam turbines at the Ukai Thermal Power Station.

  • In 2022-23, in the transmission sector, notable orders included a substation pa­ckage for 400/220 kV substations in Mandsaur and Chhitorgarh, 400 kV GIS substations, 400/220 kV GIS substations and 400 kV AIS bays extension. The company secured orders for 55 uni­ts of 500 MVA, 765/400 kV transformers and a total of approximately 51 units, 7,706 MVA for 400 kV and 220 kV transformers from central/state transmission utilities.

  • Financial performance

  • BHEL demonstrated a strong financial performance in financial year 2022-23, with an overall revenue growth of appr­o­ximately 10 per cent, reaching Rs 221.36 billion, compared to Rs 201.53 billion in the previous year. Revenue from operations witnessed a 10 per cent growth, reaching Rs 23.365 billion compared to Rs 21.211 billion in financial year 2021-22. Over the fiscal years 2018-19 to 2022-23, BHEL reported annual revenues of Rs 294.23 billion, Rs 204.91 billion, Rs 162.96 billion, Rs 201.53 billion and Rs 221.36 billion, respectively.

  • The profit after tax (PAT) showed a notable increase from Rs 4.1 billion in financial year 2021-22 to Rs 4.48 billion in financial year 2022-23, an increase of 9.3 per cent. Additionally, BHEL achiev­ed earnings before interest, taxes, depreciation and amortisation of Rs 12.31 billion, reflecting a growth of more than 11 per cent. A capital expenditure of Rs 2.62 billion was incurred during financial year 2022-23.

  • Key initiatives

  • BHEL has shifted from a “revenue-centric” approach to a “project-centric” st­ra­tegy, emphasising concentrated effor­ts in project execution. This transformation involves the implementation of an Integrated Project Management System, sequential despatches, advanced engineering planning and action, enhanced delegation to project directors and the digitalisation of site data. The company has also launched the “Quality First Initiative” across the organisation, operating on a mission mode.

  • BHEL is actively involved in the research and development (R&D) for new business areas, including coal to chemicals, high-efficiency thermal plants, rail tra­ns­portation, defence, aerospace, hydrogen value chain, and downstream oil and gas, among others.

  • In August, an MoU was signed between BHEL and Greenstat Hydrogen India to explore opportunities in green hydrogen projects worth Rs 155.3 billion. BHEL has also taken up work on setting up a Centre of Excellence for Electrolysers, Type IV hydrogen storage cylinders and a national testing facility for Type IV hydrogen storage cylinders.

  • BHEL is also leveraging its indigenously developed coal gasification technology and has completed the design and engineering of the gasifier for a 2,000 tonnes per day commercial-scale plant. Furt­her, the process of setting up a joint venture with Coal India Limited for developing a coal-to-ammonium nitrate plant is in advanced stages. This will open up a major business area for BHEL under the National Coal Gasification Mission.

  • As an established EPC player in the do­mestic solar energy market with a portfolio of 1.2 GW, indigenous manufacturing assets of solar PV cells (105 MW per an­n­um) and PV modules (226 MW per an­num) and with the recent imposition of basic customs duty on imported Solar PV cells and modules, BHEL is selectively ad­d­ressing upcoming opportunities. In addition, leveraging its experience in engineering and execution strength, BHEL is capitalising on opportunities in floating solar power plants.

  • BHEL is also executing works at Kudan­kulam 2×1,000 MW Units 3 and 4, being set up with Russian cooperation and is working with various stakeholders to indigenise and increase its offerings in the sector.

  • Ordering for emission control equipment also saw traction from various utilities such as Odisha Power Generation Corpo­ration Limited, GSECL and Tamil Nadu Generation and Distribution Cor­por­a­tion Limited, during financial year 2022-23 and a number of tenders are in the pi­peline, both from central and state sector utilities, for retrofitting the emission control equipment in the existing power plants.

  • In the EV charging space, BHEL has ta­ken up several in-house development initiatives. With successful development and certification of 122 kW charger and certification of 50 kW charger being taken up, BHEL is geared up to address the requirements of EV charging stations by offering EPC solutions in the segment. Also, initiatives to develop and manufacture oth­er ratings of EV chargers are being undertaken. BHEL is also actively pursuing battery energy storage business opportunities in the EPC mode.

  • The company is also expanding its global footprint. At present, major projects un­der execution in the overseas market include the 2×660 MW Maitree thermal po­wer project in Bangladesh; 6×200 MW Punatsangchhu-I and 6×170 MW Pu­nat­sangchhu-II hydro projects in Bhutan; 8 MW solar PV project in Mau­ritius; 4×225 MW Arun-3 hydro project and 2×20 MW Rahughat hydro project in Nepal; 26 MW Calabar gas-based po­wer project and 1.3 MW Kaduna Solar mini-grid project in Nigeria; 2×200 MW Tish­reen thermal project in Syria, be­sides a host of orders for spares and services.

  • Outlook

  • BHEL has outlined a comprehensive strategic plan for the period 2022-27, addressing immediate challenges related to profitability, liquidity, quality and project execution delays. The overarching goal is to transform BHEL into a “future-ready global engineering organisation”. Initiatives include diversification into new products and services, achieving technological self-sufficiency and cultivating a skilled and motivated workforce.

  • Overall, BHEL is strategically positioned to capitalise on opportunities, contribute to emission reduction and play a pivotal role in India’s sustainable energy solutions. The company’s commitment to innovation and development across key growth sectors further ensures a promising future.



 
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