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)
India's Largest Hydel Project: SC Asks Green Tribunal to Decide Objections Against Expert Committee Members 3/22/2019 12:00:00 AM
 
  • Calling for a review, the Supreme Court has set aside an order of the National Green Tribunal (NGT) giving a go ahead to the Subansiri hydropower project, which was conceived as the country’s largest hydroelectric project planned by the NHPC on the border of Assam and Arunachal Pradesh.

  • While it refrained from staying the execution of the project, the apex court made it clear that any step or recommendation made by the expert committee in this regard shall be subject to the outcome of the review.

  • The court found fault in the manner in which the NGT had brushed aside objections to the constitution of the expert committee to study the 2,000-MW Lower Subansiri hydroelectric project.

  • A bench headed by Justice DY Chandrachud noted that the green panel did not give any reasons while rejecting the objections raised by social activist Tularam Gogoi against the three-member committee, which included Prabhas Pandey, PM Scott and ID Gupta.

  • The NGT had in November and December last year junked the objections, paving the way for resumption of work at Lower Subansiri project on the border of Assam and Arunachal Pradesh.

  • Gogoi challenged this order in the top court. Appearing for Gogoi, advocate Anitha Shenoy put forth the grounds why the petitioner questioned the independence of the members of the expert committee.

  • Shenoy pointed out that all the three members of the expert committee had in the past either worked for, or were associated with organizations which had a recommendatory role and furnished views in regard to the Subansiri Lower Project.

  • According to the lawyer, Prabhas Pande had retired in 2011 as the Additional Director General of Geological Survey of India, which has been involved in investigations related to the Subansiri Lower project from its inception, including during Pande’s term.

  • Similarly, another member, PM Scott is currently the Chief Engineer of the Brahmaputra and Barak Basin, Central Water Commission (CWC), Shillong.

  • "The CWC has also been integrally involved in conceiving and reviewing the Subansiri Lower project right since the inception," contended Shenoy.

  • She further said that the profile of ID Gupta showed that since 1979, he has been working with the Central Water and Power Research Station in Pune, which has been involved in the design process of the Subansiri Lower at various stages since its inception.

  • Shenoy went on to show the NGT's order, arguing that the pertinent applications were summarily rejected by the NGT without specifying any reasons.

  • At this, the bench held: “We find considerable merit in the submissions which have been urged on behalf of the appellant by Ms Anitha Shenoy, learned counsel, that neither the earlier order dated 19 November, 2018 nor the impugned order dated 14 December, 2018 contains any reasons for rejecting the objection to the independence of the members of the Committee."

  • It also recorded a submission by Solicitor General Tushar Mehta, representing the Central government, stating that the constitution of a new committee was not advisable at this stage since it would entail a delay of about a year in executing the project.

  • Mehta further said that the project was to be completed in 2010 and has already been plagued with delays.

  • The Court then said that it would be appropriate and proper if the objections raised by Gogoi are "reconsidered" by the Tribunal and a speaking order is passed.

  • "While we are not inclined to impede or interdict the work of the Committee in the meantime, any steps taken would abide by the result of the objections, which are permitted to be raised by the appellant before the Tribunal," it directed.

  • The bench, accordingly set aside the impugned order of the Tribunal, and asked it to re-examine the objections on merits.



 
Voith receives contract for 1,000-MW Pakal Dul hydropower plant in India 3/15/2019 12:00:00 AM
 
  • Voith Hydro announces it recently received an award from Chenab Valley Power Projects Private Limited (CVPPPL) that includes the supply of four 250-MW Francis turbines and generators, together with auxiliary equipment, for the 1,000-MW Pakal Dul hydropower plant.

  • The Pakal Dul hydro project, located in the state of Jammu and Kashmir (J&K), will provide immense benefits for the people living in J&K in terms of improved power supply, employment generation and infrastructure creation, Voith says.

  • This project is being constructed on the Marusadar River, the main tributary of the Chenab River, at the village of Drangdhuran about 45 km from Kishtwar in Kishtwar district.

  • CVPPPL is a joint venture company of NHPC, Jammu and Kashmir State Development Corporation (JKSPDC), and PTC.

  • Previously, in J&K, Voith led the consortium that delivered six 150-MW units for the Baglihar hydropower plant for state utility JKSPDC. Voith is also executing the Salal Runner replacement project for six 115-MW units for National Hydro Electric Power Corporation Private Limited (NHPC).

  • Voith Hydro, part of the Voith Group, is a full-line supplier and partner for equipping hydropower plants, large and small.

  • The government of India recently approved measures that include declaring large hydropower projects (25 MW or more) to be part of the non-solar renewable purchase obligation, meaning Pakal Dul will be eligible.

  • The government says that India is endowed with large hydropower potential of 145,320 MW, of which only about 45,400 MW has been utilized so far. Only about 10,000 MW of hydropower has been added in the past 10 years.



 
NHPC board to consider proposal to raise up to Rs 2,017 cr via bonds on Friday 3/14/2019 12:00:00 AM
 
  • State-owned hydro power giant NHPC said on Wednesday that its board on Friday would consider a proposal to raise up to Rs 2,017.20 crore through taxable non-convertible bonds on a private placement basis.

  • "The NHPC board in its meeting on Friday will consider proposal to issue 'GOI Fully Serviced Bonds' worth up to Rs 2,017.20 crore as per mandate given by the Government of India for 2018-19," the company said in a statement.

  • The unsecured, redeemable, non-cumulative, non-convertible, taxable bonds will be issued in one or more tranches on a private placement basis in the domestic market, it added.

  • Besides, it said the company would also consider a proposal to raise funds through external commercial borrowing in the Japanese yen equivalent to USD 100 million from MUFG Bank, Japan's leading lender, to part-finance capital expenditures for on-going projects and other permissible end-uses.



 
NHPC to complete Teesta VI hydropower project in Sikkim 3/13/2019 12:00:00 AM
 
  • State-owned NHPC Limited has bagged the responsibility to complete Teesta VI hydropower project years after the initial builder – Lanco Teesta Hydro Power Ltd (LTHPL) – went into insolvency and the 500 mw project hit a roadblock.

  • The Cabinet Committee on Economic Affairs (CCEA) headed by the Prime Minister has approved the investment sanction for acquisition of LTHPL and execution of the remaining work by NHPC.

  • “It is a big responsibility that we are happy to shoulder. With only around 30 per cent job done, the project will now require new planning and execution including situation analysis and fresh tendering,” said Debajit Chattopadhyay, executive director, NHPC.

  • According to officials, the project will be implemented at an estimated cost of Rs 5,748.04 crore, which includes the bid amount of Rs 907 crore for acquisition of LTHPL.

  • The run of the river project in Sirwani village is aimed at utilising the power potential of Teesta river basin. It envisages construction of a 26.5 metre high barrage across the river, two horse shoe shape head race tunnels of 9.8 metre diameter and 13.76 km length, and an underground power house with four generation units of 125 mw each.

  • The project is expected to generate 2,400 million units of power in a year when the annual generation has the probability of being equal to or exceed 90 per cent of the time on annual basis during the expected period of operation of the scheme. While 12 per cent of this output will go to the host state Sikkim as royalty, the rest will be taken to the national power field.

  • NHPC has set a deadline of five years for the completion of project. “We do not apprehend any chance of cost or time overrun on this. But geological surprises and natural calamities may alter the scenario,” said Chattopadhyay.



 
Kiru Hydro Electric Project approved 3/13/2019 12:00:00 AM
 
  • In order to continue with approving projects with ambitions to give fillip to power production in which Prime Minister Narendra Modi takes keen interest, the Cabinet Committee on Economic Affairs has approved the Kiru Hydro Electric Project over River Chenab in Kishtwar district of Jammu.

  • This project , it may be recalled , had been held up for considerable period of time and now it has been given approval by the Central Government and Governor’s administration too has shown keen interest and extended requisite cooperation in the matter. Reckoned at July 2018 price levels , the project was going to cost Rs. 4288 crore. Chenab Valley Power Projects Private Limited (CVPPL) is in overall charge of the project, a joint venture Company amongst NHPC Jammu and Kashmir State Power Development Corporation and others with defined equity share holdings.

  • Northern Grid’s power pool would be supplemented with the production of power from this yet another prestigious project, once completed by the year 2024, and is loaded with improving the living conditions of the remote , far flung and hitherto neglected and backward areas of the state by ensuring their speedy development. Series of starting new and held up projects in the area of power development in and around Jammu and Kashmir would herald an era of meeting domestic demand for power, more or less on cent percent basis.

  • Hardly any stress needs to be laid that a sort of dormancy had crept in starting of those projects which had the potential and promise to change for the better the power scenario in Jammu and Kashmir and were not moving ahead due to one reason or the other and it is a natural corollary that unless the state Government takes the initiative seriously and impresses upon the Central Government for assistance including financial , things cannot move. The state must stand on its own feet like our neighbouring state Himachal Pradesh in generating and meeting power requirements instead of always looking to the centre to bail it out of the power crisis.



 
NHPC aims to boost capacity to 10 GW by 2022: Chairman 3/12/2019 12:00:00 AM
 
  • India's state-run hydroelectricity producer NHPC Ltd plans to raise its capacity by about 30 percent to 10 gigawatt by 2022, its chairman Balraj Joshi said on Monday.

  • Thermal power accounts for about two-thirds of India's overall 347 GW electricity generation capacity. New Delhi has set a target to install 175 GW of renewable energy capacity by 2022.

  • The company's current generation capacity is about 7.1 GW, Joshi said.

  • NHPC plans a capital expenditure of 38 billion rupees ($543.79 million) for the fiscal year to March 2020, compared to about 20 billion rupees spent so far in this fiscal year, he said.



 
NHPC eyes stressed 120 Megawatt Jal Power plant in Sikkim 3/12/2019 12:00:00 AM
 
  • State-run hydro major NHPC will bid for 120 Megawatt Jal Power stressed plant in Sikkim when the project is bid out in the bankruptcy court this month. Lenders had referred the project to NCLT and the bankruptcy court is likely to call bids for the project soon, NHPC chairman and managing director Balraj Joshi said.

  • NHPC recently obtained the approval of the Union cabinet for investment of Rs 5,748 crore in 500 Mw Lanco Teesta Hydro Power that the state-run company acquired for Rs 907 crore by bidding in NCLT. The project is likely to be commissioned in 3.5 years, Joshi said.

  • Investment sanction of Rs 4,287 crore for construction of 624 Mw Kiru Hydro Electric Project located on river Chenab in Kishtwar district of Jammu & Kashmir by a JV of NHPC and J&K state power development utility was also approved. The project is scheduled to be completed in 4.5 years by Chenab Valley Power Projects Pvt Ltd.

  • NHPC has replaced PTC India as aggregator for the second round of aggregation scheme for procurement of 2,500 Mw power purchase agreements for three years. As aggregator, NHPC will sign agreement for power procurement with stressed power plants and back-to-back power supply pacts with discoms. “NHPC will receive trading margin from discoms for aggregation between generators and distribution companies,” Joshi said.

  • NHPC targets an installed capacity of 10,000 Mw by 2022 against the present capacity of 7,071 Mw.

  • In a related development, the Supreme Court on Monday allowed a three member expert committee to study and submit impact report on the proposed 2,000 Mw Lower Subansiri hydroelectric project on the border of Assam and Arunachal Pradesh.

  • Organisations opposing the projects had approached the apex court against National Green Tribunal (NGT) order rejecting an appeal filed by social activists against the constitution of the committee.



 
Better-than-expected power tariff policy to give NTPC a boost 3/12/2019 12:00:00 AM
 
  • The new Central Electricity Regulatory Commission (CERC) tariff regulations for the period 2019 to 2024 are better than what the Street anticipated. NTPC, India’s largest power producer, would be the biggest beneficiary given that it has the maximum share in the country’s power agreements.

  • Analysts expect NTPC earnings to rise up to 8 per cent FY20 onward against earlier concerns of earnings downgrades if the regulations were not in favour.

  • NTPC shares have gained 15 per cent in the past one month in anticipation of positive regulations after the draft proposal was made in December.

  • Shares of Power Grid and NHPC have also gained 10 per cent and 6.3 per cent, respectively, in the same period. While the new regulations are only marginally positive for power transmitters, the Street is relieved that the new proposals do not contain major negatives.

  • From all the regulations, the most prominent and impactful regulations include no reduction of equity for older plants, permission to allow pass through of coal handling losses, incentives on making higher power generation during peak hours, and higher allowance on the operational and maintenance expenses.

  • According to the previous guidelines, power plants that surpassed their useful life (generally 25 years) had to reduce their equity to the extent of depreciation. Given that power is charged at a tariff arrived by considering a fixed return on equity, reduction in equity would lead to lower realizations for the generator. As the oldest power producer, NTPC has more than 20 per cent plants that are beyond useful life, according to analysts.

  • The regulator also allows recovery of O&M expense of 8-10 per cent, for both power generator and transmitter, also a positive for Power Grid. The producer will also get incentives of up 65 paise per unit in peak hours and 50 pasie on nonpeak hours if the capacity utilization is more than 85 per cent.

  • Another positive is that the regulator has allowed the loss of 85Kcal per gross calorific value coal between unloading and firing point. Earlier, the generator had to bear the loss on fuel damage from unloading to firing point leading to under recoveries.

  • While there are certain negatives too, the positives far outweigh them. For instance, NTPC alone will save Rs 700 crore to Rs 900 crore annually from FY20 onward, according to the analysts.

  • On Monday, stocks of three state owned power companies NTPC, Power Grid Corp of India and NHPC closed at Rs 151.3, Rs 194.4 and Rs 25.3. Consensus target prices for these stocks are Rs 187.3, 226.7 and 27.6, according to Bloomberg.



 
NHPC to complete Teesta VI hydropower project in Sikkim 3/12/2019 12:00:00 AM
 
  • State-owned NHPC Limited has bagged the responsibility to complete Teesta VI hydropower project years after the initial builder – Lanco Teesta Hydro Power Ltd (LTHPL) – went into insolvency and the 500 mw project hit a roadblock.

  • The Cabinet Committee on Economic Affairs (CCEA) headed by the Prime Minister has approved the investment sanction for acquisition of LTHPL and execution of the remaining work by NHPC.

  • “It is a big responsibility that we are happy to shoulder. With only around 30 per cent job done, the project will now require new planning and execution including situation analysis and fresh tendering,” said Debajit Chattopadhyay, executive director, NHPC.

  • According to officials, the project will be implemented at an estimated cost of Rs 5,748.04 crore, which includes the bid amount of Rs 907 crore for acquisition of LTHPL.

  • The run of the river project in Sirwani village is aimed at utilising the power potential of Teesta river basin. It envisages construction of a 26.5 metre high barrage across the river, two horse shoe shape head race tunnels of 9.8 metre diameter and 13.76 km length, and an underground power house with four generation units of 125 mw each.

  • The project is expected to generate 2,400 million units of power in a year when the annual generation has the probability of being equal to or exceed 90 per cent of the time on annual basis during the expected period of operation of the scheme. While 12 per cent of this output will go to the host state Sikkim as royalty, the rest will be taken to the national power field.

  • NHPC has set a deadline of five years for the completion of project. “We do not apprehend any chance of cost or time overrun on this. But geological surprises and natural calamities may alter the scenario,” said Chattopadhyay.



 
Power Regulator’s Norms Will Provide Relief To Utilities, Brokerages Say 3/11/2019 12:00:00 AM
 
  • Central Electricity Regulatory Commission’s tariff norms for the five-year period between financial year 2019 and 2024 will provide relief to power utilities, according to brokerages.

  • India’s power regulator’s norms—a benchmark for state regulators to frame their respective state tariffs—will be applicable on thermal, hydroelectric generation and transmission projects.

  • The tone of the regulations, according to IIFL analyst Harshvardhan Dole, appears to be dovish and accommodative which is a significant relief to utilities. IIFL said it expects stocks like NTPC Ltd., NHPC Ltd. and Power Grid Corporation Of India Ltd. to react positively to the new norms.

  • Agrees, Amish Shah, analyst at Bank of America Merrill Lynch, adding that CERC has become more lenient on the norms proposed in the draft.

  • CERC has maintained the benchmark return on equity rates applicable for the thermal, hydro and transmission utilities at 15.5 percent, 16.5 percent and 15.5 percent, respectively. In its draft, the regulator had made a strong push to disincentivise power projects older than 25 years by curtailing the regulated equity eligible for earning the assured RoE of 15.5 percent. The regulator, however, has done away with such proposal in the final regulation. “The new norms bring a sigh of relief for generating stations as they are not only less stringent vis-a-vis the draft norms, but also RoE-accretive,” Swarnim Maheshwari, equity research analyst at Edelweiss said. The final norms remove the overhang from NTPC, the brokerage said.

  • The order is sentiment positive as it puts to rest concerns on an assured RoE cut, Citi analyst Venkatesh Balasubramaniam said. “This is the third-consecutive five-year tariff regulation period when the regulators have not tinkered with RoE.”

  • CLSA analyst Bharat Parekh called the regulations a “positive surprise” and a big departure from its draft. “Apart from maintaining the RoE for NTPC, the coal-loss pass-through, the carve-out of security expenses, higher special allowances and O&M expenses were key in neutralising the tightening of norms,” he said.



 
Govt approves Rs 31,560-crore investments for power projects 3/8/2019 12:00:00 AM
 
  • The government on Thursday cleared investment proposals worth over Rs 31,560 crore in power projects, including two coal-based thermal plants and a hydro project on river Chenab in Jammu and Kashmir.

  • The thermal power plants in Buxar, Bihar, and Bulandshahr, Uttar Pradesh, are expected to become operational by 2023-24.

  • Briefing media after the meeting of the Cabinet Committee on Economic Affairs (CCEA), Finance Minister Arun Jaitley said approval has been given to an investment of Rs 10,439.09 crore for the 2x660 MW Buxar Thermal Power Project (Buxar TPP) in Bihar.

  • The Buxar project will be implemented by SJVN Thermal Private Ltd, a wholly owned subsidiary of SJVN, a mini-ratna CPSU.

  • "The project is expected to generate substantial direct and indirect employment apart from various other socio-economic development in the project area. The Buxar TPP will start yielding benefits from 2023-24," said an official release.

  • The CCEA, chaired by Prime Minister Narendra Modi, also gave nod to the investment proposal for a 2x660 MW Khurja Super Thermal Power Plant (STPP) in Bulandshahr at an estimated cost of Rs 11,089.42 crore and Amelia Coal Mine in the Singrauli district of Madhya Pradesh.

  • The Khurja STPP, too, will start yielding benefits from 2023-24, the government said.

  • Jaitley also said the CCEA gave approval to the investment for acquisition of Lanco Teesta Hydro Power Ltd (LTHPL) and the execution of balance work of the Teesta Stage-VI Hydro Electric Project by NHPC in Sikkim.

  • This will be implemented at an estimated cost of Rs 5,748.04 crore (at July 2018 price level), which includes a bid amount of Rs 907 crore for the acquisition of LTHPL and an estimated cost of balance work of Rs 3,863.95 crore that includes Interest During Construction (IDC) and Foreign Component (FC) of Rs 977.09 crore.

  • The project would generate 2,400 million units in a 90 per cent dependable year with installed capacity of 500 MW (4x125 MW).

  • The finance minister further said the CCEA has approved the investment for the construction of Kiru Hydro Electric Project (624 MW) by Chenab Valley Power Projects Pvt Ltd (CVPPPL) in Jammu and Kashmir. The project will be implemented at an estimated cost of Rs 4,287.59 crore which includes IDC and FC of Rs 426.16 crore and an infusion of equity of Rs 630.28 crore by NHPC in CVPPPL.

  • The project is located on river Chenab in the Kishtwar district of Jammu and Kashmir.

  • "It envisages construction of a 135 m high concrete gravity Dam above deepest foundation level, 4 Nos circular, Pressure Shaft of 5.5 m internal dia of length varying from 316 m to 322 m, an underground Power House and 4 Nos Tail Race Tunnel, Horseshoe shape, 7 m dia and length varying from 165 m to 190 m," said another release.

  • The foundation stone of the project was laid by Modi in February this year.

  • The Jammu and Kashmir government has already granted exemption on account of payment of levy of toll tax, State Goods and Service Tax, waiver of free power in a decremental manner and water usage charges for 10 years from the date of commercial operation.



 
Power Minister rules out mega consolidation of power sector PSUs 3/8/2019 12:00:00 AM
 
  • Power Minister R K Singh on Thursday ruled out consolidating all state-owned power sector firms like NTPC, NHPC, SJVNL and PFC into a single entity, saying it would be the biggest company of the world but will not be manageable. However, the minister said discussions are on regarding merger of some companies under the Power Ministry.

  • The issue of consolidation in the power sector gained prominence after the government recently approved REC's takeover by the Power Finance Corporation (PFC).

  • "If it (consolidation of all power sector PSUs) does happen, (then) it will be the biggest company of the world.

  • "But we have to think about whether it will manageable in the sense that you need managerial focus also and if it become too big and too diverse, it is matter of management control," Singh said at a press conference.

  • He was replying to a question on whether such a consolidation can happen in the power sector to improve efficiency.

  • When asked about mergers of some power sector PSUs, he said, "Discussions are happening of and on."

  • In December 2018, the Cabinet Committee on Economic Affairs approved the sale of the government's 52.63 per cent stake in REC to PFC. The two state-owned firms are non-banking finance companies which fund power sector projects.

  • The government is expected to garner around Rs 15,000 crore from this merger.

  • Another proposal for SJVNL's takeover by state-run power giant NTPC is also under consideration of the government.

  • Industry experts said consolidation of firms in the same sector brings efficiency but one has to see that whether it leads to monopoly and also whether the mega entities would be manageable.

  • Earlier last year, the government had approved dilution of its 51.11 per cent stake in Hindustan Petroleum Corporation Ltd (HPCL) in favour of ONGC in the oil and gas sector.



 
PDD’s 132-KV line hanging fire due to shortage of funds 2/23/2019 12:00:00 AM
 
  • People of twin districts of Doda and Kishtwar have to rely on the NHPC’s 132-KV transmission line to get electricity but the power development department (PDD) has not been able to make its own transmission line functional so far.

  • For the want of funding, the PDD has left the work its 132-KV transmission line midway. Instead, it is paying rent to the NHPC for providing electricity to the area.

  • With Rs 35-crore funds from the Central government, the work on a double circuit 132-KV line was started in 2007 after the contract was awarded to KEC International. The line between Ramban-Khellani-Kishtwar was taken up under the Prime Minister’s Reconstruction Plan in 2007 and was to be completed in 2009. However, the project has not seen the light of the day so far.

  • According to sources, the construction cost got escalated and the PDD required around Rs 11 crore more to complete the project. “But the Central government refused to pay the amount. The state government too was not interested in funding the escalated cost of the project,” said a source within the PDD.

  • He said several requests were sent to the government to provide funds for completing the project but to no avail.

  • On February 7, snowfall damaged the NHPC’s 132-KV transmission line and since then power has not been restored to Kishtwar district. Thereafter, the NHPC took permission from the PDD to use its incomplete transmission line from Khellani. But the PDD on its own isn’t doing anything to make the line functional.

  • The source further said a few people with vested interests wanted the PDD to rely on the NHPC. Despite repeated attempts, PDD officers couldn’t be contacted.

  • Work started in 2007

  • With Rs 35-crore funds from the Central government, the work on a double circuit 132-KV line was started in 2007 after the contract was awarded to KEC International. The line between Ramban-Khellani-Kishtwar was taken up under the Prime Minister's Reconstruction Plan in 2007 and was to be completed in 2009. However, the project has not seen the light of the day so far.



 
NHPC LTD. - Signing Of Mou With Neyveli Lignite Corporation Of India Limited (NLCIL) For Power Trading. 2/20/2019 12:00:00 AM
 
  • In compliance to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, it is to inform that NHPC Limited has signed a Memorandum of Understanding (MoU) with Neyveli Lignite Corporation of India Limited (NLCIL) in the area of Power Trading on February 18, 2019 at Chennai.

  • As per MoU, NHPC and NLCIL will offer surplus power available with northern and north-eastern region to the bulk consumer in the southern region of the Country at affordable price.

  • Both, NHPC and NLCIL are having category-I trading licence from CERC to trade power in whole of India.



 
NHPC issues Rs 1,500 crore bonds 2/19/2019 12:00:00 AM
 
  • Sate-owned hydro power generator NHPC Ltd today announced it has issued secured, redeemable, non-cumulative, non-convertible, taxable X Series bonds on private placement basis with an issue size of Rs 1,500 crore.

  • The bonds will have a tenure of 10 years from the deemed date of allotment including a moratorium period of 3 years and a coupon rate of 8.65 per cent per annum, the company said in a statement on the Bombay Stock Exchange (BSE).

  • The deemed date of allotment for the bonds is 8 February 2019. The company proposed to list the issue at the Wholesale Debt Market of the National Stock Exchange (NSE).



 
UT not to hike power tariff, pegs earning at Rs 850 crore 2/19/2019 12:00:00 AM
 
  • UT electricity department has no immediate plans to hike power tariff, as it will earn nearly Rs 850 crore in the next financial year 2018-19.

  • The UT power department, in its petition submitted before the joint electricity regulatory commission (JERC), had said that with current tariff, they would earn around Rs 850 crore and that there would be a surplus of Rs 18.65 crore with the department for the period between 2017-18 and 2019-20. Last time, JERC had marginally increased rates in domestic and commercial categories, but had reduced the tariff in industrial category. In the domestic category, the rates were increased from Rs 2.55/unit to Rs 2.75/unit in the slab of 0-150 units.

  • There was no change in the Rs 4.8 rate slab of 151-400 units. In the slab of more than 400 units, the rate was increased from Rs 5 to Rs 5.2 per unit.

  • On similar lines, there was only a small increase in the tariff for commercial consumers last time. There was no change in the per-unit rate of Rs 5 in the slab between 0-150 units, while the rate for the 151-400 unit slab was increased from Rs 5.2 to Rs 5.3 per unit.

  • In the above 400-unit slab, rates were increased from Rs 5.45 to Rs 5.60 per unit. The electricity department caters to 2.28 lakh consumers, who are divided into nine categories. As per official figures, 1.99 lakh consumers are domestic users, accounting for more than 87% of the overall figure. The remaining 13% consumers are divided under commercial, small power, medium supply, large supply, bulk supply, public lighting, agriculture power and temporary supply categories.

  • Chandigarh does not have its own power plant and buys power from Central generating stations, such as Nuclear Power Corporation of India Limited, National Thermal Power Corporation Limited, Bhakra Beas Management Board, National Hydroelectric Power Corporation (NHPC) and the Satluj Jal Vidyut Nigam (SJVN). Power allocation from each station is fixed for a year, while the deficit is met through an unallocated quota and short-term power purchase.



 
NLC India and NHPC sign MoU for power trading 2/19/2019 12:00:00 AM
 
  • NLC India and NHPC has signed a Memorandum of Understanding in the area of power trading on 18 February 2019.

  • Through this MoU, both companies will offer surplus power available in the Northern & North East Region to the bulk consumer in Southern Region at an affordable tariff. This MoU will create a win win situation for the generators and bulk consumers.



 
NHPC issues Rs 1,500 crore bonds 2/18/2019 12:00:00 AM
 
  • Sate-owned hydro power generator NHPC Ltd today announced it has issued secured, redeemable, non-cumulative, non-convertible, taxable X Series bonds on private placement basis with an issue size of Rs 1,500 crore.

  • The bonds will have a tenure of 10 years from the deemed date of allotment including a moratorium period of 3 years and a coupon rate of 8.65 per cent per annum, the company said in a statement on the Bombay Stock Exchange (BSE).

  • The deemed date of allotment for the bonds is 8 February 2019. The company proposed to list the issue at the Wholesale Debt Market of the National Stock Exchange (NSE).



 
REC acquisition not to have negative impact on PFC financials: PFC CMD 2/18/2019 12:00:00 AM
 
  • PFC CMD Rajeev Sharma says there is no impact on the company's quality of assets. The asset quality is rather seen improving and PFC is settling the stressed assets because there is demand increase in the market after implementation of Saubhagya scheme.

  • Edited excerpts:

  • You have received CCI’s nod for acquiring 52% in REC. What would be the impact on the financials due to the acquisition?

  • I do not see negative impact on my financials. Very recently, we have received approval from Reserve Bank of India also. So, all regulatory approvals are in place for this deal. As there are rumours in the media, our capital adequacy is increasing and we have reached 19% capital adequacy ratio. In tier-1 capital, we are having 16% and we are trying to maintain better capital adequacy ratio through various means like tying up with various banks for tier-2 capital and we are regularly monitoring our ongoing projects which we have funded. Once they are commissioned, the risk weight comes down to 50%. Similarly, in the advances where state government guarantees are there, we are trying to expedite those state government guarantees because risk weight comes down to 20%.

  • There are concerns that this acquisition is going to lead to an increase in leverage for PFC since you are resorting to borrowings to fund this acquisition. What is the mix of debt and equity?

  • Time and again I have clarified that it will be through repayments of our existing loans and for the rest, we will get debt from the market. I do not see any impact on my quality of assets, rather it is improving and we are settling the stressed assets because there is demand increase in the market after implementation of Saubhagya scheme. So, load is increasing in the system and these stressed assets are likely to get better rates now. We have very recently resolved Ratle hydro project which was a hydro project in J&K of GVK Group. We have settled with the developer which is regularly paying back to us and in Q4, we will be reversing around Rs 600 crore provision which was made for this account. Similarly, in some other assets like SEGA, DAN Energy and Essar Transmission, we are likely to get 100% principal. We are seeing a positive movement towards resolution of these stressed assets.

  • Could you share with us the rough estimates of the funds you would be requiring for the acquisition? How is it going to impact your return ratios as well as CAR?

  • Actually the amount will be decided in accordance with SEBI guidelines and the final decision will be taken by the committee chaired by the finance minister. We will come to know the exact amount only then. However, we do not see any impact on regulatory requirements of capital adequacy. We are fully aware that once we raise more than 10% of our own funds from the market, my tier-1 capital will be reduced by that amount but even after that, we will be in a comfortable position to meet the regulatory requirements of capital adequacy for our own future as well as ongoing business.

  • You have already made a 52% provision for stressed assets for PFC. By how much will this provision rise due to RECs acquisition?

  • REC is a consortium partner in most of the private sector projects. So, most of the stressed assets of REC is also with us and they have also made a provision around 48% in all these stressed assets. I do not see any further provisioning required either in REC case or in PFC case because we have made a provisioning of 52%. Rather, I am expecting that some percentage will be reversed after resolution of these stressed assets and as I explained earlier, the demand in the system is increasing after implementation of the Saubhagya scheme.

  • These stressed assets will fetch a better rate in the market. In one case, we were getting around Rs 3,500 crore but now a new bidder has come and he is offering me around Rs 4 crore per megawatt. So, we are getting a better rate. That is why in most of the cases we are expecting to get a better price for these stressed assets.

  • What is the quantum of assets that you see getting resolved and the possible provision write back as well for both PFC and REC?

  • Our loan asset book is roughly Rs 3 lakh crore, out of which 82% is government utilities and so there is no stress at all. In the remaining 18%, private sector 8% is also perfect. They are regularly paying back to us. So in 90%, there is no stress. Remaining 10% we have stress but these all assets are at various stages of resolution and in some cases, we are getting a good rate.

  • Therefore I am expecting that 52% provisioning which we have already made in all these stressed assets may be reversed. It is very difficult to specify at this stage. One asset I already said is Ratle. Of three other assets -- SEGA and DANS Energy are two hydro projects in Sikkim. We are likely to get the principal amount and similarly, in case of Essar Transmission, we are likely to get principal amount back. So we are quite comfortable.

  • In all other remaining stressed assets we are making sincere efforts along with our consortium partners to resolve them amicably and to get a better rate.

  • Is there going to be an open offer to minority shareholders?

  • It is not there but as I told you that we are already going ahead with the proposal in accordance with the SEBI guidelines and whatever approvals were required have been received already. Now REC is taking the consent from the foreign currency lender and that is pending now.

  • Rating agencies have said that depending on REC’s rating, PFC rating may get impacted. How would you assuage these concerns?

  • We are regularly in touch with these rating agencies. As you may be aware, domestic rating has been maintained AAA by CRISIL and Icra and we are regularly interacting with them and we are sharing with them our efforts and initiatives to maintain our rating like we are offloading our investments. PFC GEL has already been merged with PFC, a notification has already been issued by Corporate Affairs Ministry.

  • Similarly, our investments in Power Grid we have offloaded some of it as in in NHPC and at the right time we will offload our investments in Coal India Ltd when we get a better price. We are trying to address the concerns of rating agencies. We are regularly in touch with international rating agencies as well as domestic rating agencies and we have explained to them very clearly the efforts being made by PFC in this direction.



 
Protest against interrupted power supply in J-K’s Bhadarwah 2/14/2019 12:00:00 AM
 
  • Hundreds of people staged a protest Wednesday against the alleged failure of the administration to restore power supply in Bhadarwah town of Doda district in Jammu and Kashmir.

  • The protesters were agitated over Jammu Divisional Commissioner Sanjeev Kumar Verma’s claim on Tuesday that power supply was restored by up to 90 per cent in the snowfall effected Doda, Ramban and Kishtwar districts and rest would be restored by Wednesday.

  • Calling the statement as “irresponsible”, the protesters, who assembled at Seri Bazar, area alleged the entire region was reeling under darkness after heavy snowfall on February 6 and demanded action against for his “misleading information”. “The Amar Chashma transmission tower which broke down due to heavy snowfall has not been repaired till date. The statement of the divisional head is a cruel joke with the people of Chenab Valley,” General Secretary, Shri Sanatan Dharam Sabha Bhadarwah, Neeraj Singh Manhas said. Manhas, who was leading the protest, said the entire Doda and Kishtwar district is facing electricity crisis for a week. “We are facing immense problems due to snapping of the power supply and have to pay Rs 50 for charging the battery of our mobile phones,” Manzoor Shah, one of the protesters said. Superintendent Engineer, Power Development Department (PDD) Doda-Kishtwar, Asgar Hussain said, that some more time is required to restore the power supply in the area. “Both PDD and NHPC employees are working overtime to restore the power supply. It will take another day to mend the damaged transmission lines in order to restore power supply in Doda but for district Kishtwar it will at least take one week more ,” he said.



 
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