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 needs to tap Hydro Power’s potential; here’s what should be done to remove hurdles 11/5/2018 12:00:00 AM
 
  • Despite India being resource-rich, hydro power is yet to contribute a commensurate share to its energy mix, accounting for only 13.2% of the installed generation capacity of 343,899 MW. The north-eastern state of Arunachal Pradesh best represents this scenario, having a mere 118 MW of installed capacity compared to a potential 50,000 MW.

  • Besides what this entails for a rapidly expanding economy, the underutilisation of resources denies the system hydro power’s advantage of starting and stopping generation faster than other conventional modes, which helps balance the transmission grid. This is especially important given the recent surge in solar and wind power generation, which can be uncertain and intermittent.

  • Since the sector was opened to private participation in 1991, just 3.2 GW (or 7% of the installed hydro capacity) has been commissioned by private players to date, with time and cost overruns coming in the way of investment. The sector is reeling under cost overruns of about `52,697 crore. Of the 37 hydro projects with 12,178 MW capacity under implementation, work at 16 plants with 5,190 MW capacity is stalled—mostly due to fund constraints. The largest among the stalled assets is the NHPC’s (formerly National Hydro Power Corporation) 2,000-MW Lower Subansiri project on the Assam-Arunachal border—protests by activists over project impact is behind the impasse. Lack of clear policy guidelines, long gestation periods, uncertain geological conditions and infrastructural challenges are the other factors impeding the sector’s growth.

  • Sharad Mahendra, COO, JSW Energy, tells FE the sector would get a boost if the government opted for a hydro-purchase obligation policy, as in the case of solar and wind energy. With its 1,000-MW Karcham-Wangtoo plant and the 300-MW Baspa hydro plant, JSW Energy owns 40% of the total private hydro capacity. The Karcham-Wangtoo facility is a run-of-the-river plant on the Sutlej in Kinnaur district of Himachal Pradesh – by making immediate use of the river flow, run-of-the-river projects check submergence of landmasses, reducing the impact on the local population. However, issues peculiar to hydro power like catchment area treatment and creation of local area development fund add to the capital cost of such projects.

  • “The tenure of loans for hydro projects is another issue,” Mahendra says. “The depreciation period for hydro projects is only 12 years, stricter than for coal-based power plants.” Though electricity from hydro plants becomes cheap after the servicing of loans, high tariffs in the initial years makes it unattractive to discoms. While the average price at which discoms purchase power is Rs 3.5/unit, hydro power can cost as much as `6.4/unit.

  • To make hydro power more affordable, the power ministry has initiated policy measures through which the cost of construction of roads, bridges, and flood moderation infrastructure would be excluded while calculating tariffs for such plants. The NITI Aayog’s draft national energy policy proposes a rehabilitation package for revival of stranded hydro projects, with the project life of such projects being increased (60 years instead of the present 35 ) to allow access to long-term financing. The ministry has also forwarded a proposal to support 33 projects with a combined capacity of 7,893 MW. Under this has been proposed central funding of `11,049 crore through 4% interest subvention for the 2018-2028 period. To encourage private players, discoms would be receiving funds from the Centre to sign hydro power purchase agreements (PPAs) for at least five years. Sources say the government would also be setting up a hydro power development fund to provide capital support in the form of interest subvention.

  • Commenting on the policy proposals, Kameswara Rao, leader energy, utilities and mining, PwC India, says, “they are largely incremental, with a few fiscal sops. Since the real risks are much higher, they are unlikely to spur new investment”. He feels, “an ideal policy would include state support to expedite construction and creation of additional revenue streams, such as for water management and ancillary services”.



 
Talks of possible merger of SJVNL and NTPC? 11/1/2018 12:00:00 AM
 
  • CPI(M) legislator from Theog, Himachal Pradesh, Rakesh Singha, has written a letter addressed to Chief Minister Jairam Thakur red-flagging the alleged merger of the state’s Satluj Jal Vidyut Nigam (SJVN) Ltd. with National Thermal Power Company (NTPC).

  • In the letter, Singha, has drawn the attention of the Chief Minister to talks doing the rounds of the proposed merger.

  • "You must be aware,there is news going around of the merger of SJVNL with NTPC. I wish it is only a rumour, but if it is a fact the government must take it seriously and take steps to stop such a move as it is against the interests of Himachal Pradesh and it's people”, says the letter. A similar proposition was rejected in state’s assembly session in 2017.

  • SJVN Ltd. is a mini ratna, Category-I and Schedule –‘A’ Central Public Sector Enterprises (CPSE) under administrative control of the Union Ministry of Power. It was incorporated on May 24, 1988 as a joint venture of the Government of India (GOI) and the Government of Himachal Pradesh (GOHP).

  • It began with a single project and single state operation- India’s largest 1500 MW Nathpa Jhakri Hydro Power Station in Himachal Pradesh. The present installed capacity of SJVN is 2002.6 MW comprising three more projects- Rampur Hydro Power Station (412 MW), Khirvire Wind Power Project (46.7 MW) and Charanka Solar PV Power Plant (5 MW) -- other than the Nathpa Jhakri Hydro Electric Power Plant. It has a footprint in hydroelectric projects in Uttarakhand and in neighbouring Nepal and Bhutan as well.

  • With respect to the hydro power projects under NHPC and NTPC in Himachal Pradesh, Singha has mentioned that even though Himachal is a beneficiary of the NHPC and NTPC’s 800 MW Parvati Hydel Project and Kol Dam projects respectively, it receives nothing.

  • “...How the Union government treats Himachal Pradesh,can be judged from the fact, the state only receives 15 megawatt electricity from the Dhear power house in slapper, one and a half percent of the revenue generated from Bhakra, a big zero percent from Kol dam of NTPC and Parvati hydel project of NHPC ,apart from the statutory 12 percent recommended by the Ranga Rajan commission for hydel projects constructed after 1990,” says the letter.

  • Whereas SJVNL’s 1,500 MW Nathpa Jhakri Hydro Electric Power plant has been designed to generate 6950.88 MU of electrical energy in a 90% dependable year with 95% machine availability. It currently provides 1,500 MW of peaking power to the Northern Grid- Haryana, Uttarakhand, HP, J&K, Uttar Pradesh, Punjab, Rajasthan, Chandigarh and Delhi -- and out of the total energy generated at the bus bar, 12% is supplied free of cost to the home state i.e. Himachal Pradesh. From the remaining 88% energy generation, 25% is supplied to HP at bus bar rates.

  • Besides the above mentioned benefits, indirect benefits have also accrued to the region of Nathpa (where the project is located), in the tribal district of Kinnaur, by way of increase in agriculture and industrial production. In addition, the project has provided gainful employment to a large number of skilled and unskilled workers and has also opened the landlocked hinterland by providing essential facilities, such as schools, hospitals etc. for the people of the area.

  • Singha, in his letter has further mentioned that it is only in this project that the state has an equity of 25% and it is placed better in providing employment to the people of the state to both NTPC and NHPC. He has warned that if any move is made to destroy it’s character, it will be met with strong resistance by the people of the state. “....It is only in the SJVNL that we have 25 percent equity in the 1500 mw nathpa jhakri hydel project. In respect to providing employment to the people of the state it is better placed to both NTPC and NHPC. Any move to destroy the character of the SJVNL would be resisted by the people of the state.”

  • Why such a merger is likely to take place, considering that the SJVNL is not running losses, is still unknown.

  • “The Government is still silent on this issue. First and foremost, NTPC specialises in dealing with thermal energy and not hydro energy. Why the Union Government tries to propose it’s merger every year is still not clear. It can only be assumed that it’s the BJP’s attempt to privatise such a project”, Singha told Newsclick.

  • Asked why he has used the word “rumour” in his letter, he told Newsclick, “Something of this sort was proposed last year also, but the idea was opposed in the Vidhan Sabha itself. I have deliberately used the word rumour to let the CM know that the attempt to merge it silently is in fact known and it should be taken as a stern warning against any such merger.”

  • Singha is expected to meet the Chief Minister over the same in the coming week as the issue is expected to create a huge stir if the proposed merger comes into being.



 
Govt may step up disinvestment drive with power PSUs’ mergers 10/31/2018 12:00:00 AM
 
  • The government is looking to execute at least two mergers among central public sector enterprises (CPSEs) in the power sector to step up the disinvestment process and meet its target.

  • It may kickstart the process with top power generation company NTPC taking over hydropower firm SJVN, a senior government official said.

  • “Some blue-chip CPSEs have shown interest in acquiring smaller CPSEs where they feel synergies exist,” the official told ET. “Also there are some CPSEs which can achieve efficiencies of scale if they combine their strengths.”

  • NTPC has already evinced interest in taking over SJVN, in which the government holds 63.79% stake, he said, adding that there could be a possible merger between power sector financing firms Power Finance Corporation (PFC) and REC Ltd. The government holds 65.64% in PFC and 57.99% in REC Ltd.

  • The government expects to raise around Rs 21,000 crore at existing market prices if these two deals work out in this financial year, the above quoted official said. The government has so far raised Rs 10,028 crore from disinvestment in the current fiscal against the target of Rs 80,000 crore.

  • The other firms where synergies are being explored include NHPC Ltd, North Eastern Electric Power Corporation Ltd, and Power Grid Corporation of India Ltd.

  • “The administrative ministry and the respective CPSEs are doing their evaluation. We will also suggest some possibilities,” a finance ministry official told ET.

  • A senior executive with a state-run company, however, said NTPC may face some hurdles in its bid to acquire SJVN. “It may not be an easy route as the Himachal Pradesh government holds 26.85% in the firm," the person told ET.

  • The department of investment and public asset management (DIPAM) on Tuesday floated expression of interest for engagement of advisors for merger & acquisition in the power sector. DIPAM said it looks to engage one adviser in the process of (up to) two M&A in the energy sector.

  • Some experts don’t agree with the government’s move to push disinvestment through PSU mergers. “If the government is looking to meet its deficit targets by forcing these firms to buy its stake in other companies, in the long run it may impact the profitability of these firms, which should be a larger concern,” said MP Shorawala, a former independent director with Container Corporation of India.

  • Last year, ONGC bought the government's entire 51.11% stake in HPCL for Rs 36,915 crore, but HPCL is yet to recognise ONGC as its promoter and has only one member from ONGC on its board.



 
After Insurance, Govt calls off Pakal Dul talks with AFCONS 10/31/2018 12:00:00 AM
 
  • Just couple of days after scrapping Government Employees Group Medical Insurance Scheme with Anil Ambani’s Reliance General Insurance, the State administration has also called off its ongoing negotiations with M/s AFCONS JAL JV for allotment of work on two tunnels of 10 kilometers each at 1000 MW Pakal Dul hydro-electric power project over river Marusadar, a tributary of Chenab, in Kishtwar district following red flag raised by Governor Satya Pal Malik mentioning “fishy deal” to allot the contract by raising cost of the work by 35 per cent.

  • Authorities have decided to float fresh tenders for the tunneling work at the project.

  • Official sources confirmed to the Excelsior that negotiations with M/s AFCONS which was lowest bidder for the tunneling work have been called off. A decision to this effect was taken at the meeting of Board of Directors of Chenab Valley Power Projects (CVPP). The Corporation has decided to float fresh tenders for the work.

  • The Corporation had kept reserve price for the work at Rs 1900 crore while the lowest bidder, the AFCONS had asked for Rs 2800 crore for the works which included tunneling, boring and allies activities at two places of 10 kilometers each. The negotiations were on between AFCONS and the Corporation for past sometime.

  • However, the Governor recently raised concerns after getting reports about some “fishy deals” in the project. He had said that negotiations were being held to raise cost of the project by 35 per cent and Rs 100 crore deal has been unearthed in it.

  • “Recently I came across another deal in the construction of dam over a river. The deal had been finalized for Rs 100 crore. The officers had raised cost of the project by 35 per cent over the minimum estimates. I came across the deal and stopped it. The concerned officer was removed,” he had said. However, he didn’t name the dam or the officers involved in striking such a big deal.

  • But, according to sources, there were enough indications that project in question was 1000 MW Pakal Dul hydro-electric power project being constructed in Kishtwar and that a senior IAS officer had been replaced by another IAS officer.

  • Sources said the Board of Directors of CVPP met and decided to call off negotiations with M/s AFCONS, which was lowest bidder for the tunneling works at Rs 2800 crore as against minimum reserved price of Rs 1900 crore. Now, fresh tenders will be floated for the project.

  • They added that the decision was taken after the Government also called entire record and had a careful study of it.

  • Sources pointed out that the project had gained significance as its foundation stone was laid by Prime Minister Narendra Modi from Zorawar Singh Auditorium in Jammu University on May 19 this year.

  • Besides tunneling and boring work of 10 kilometers at two places, the project have two other components including civil works and power generation, which have already been allotted to AFCONS and JP Associates respectively.

  • On February 21, 2018, the civil works package for construction of Power House of 1000 MW Pakal Dul hydro electric project was awarded to AFCONS JAL JV at the total cost of Rs 1051 crore by the CVPP. The work was scheduled to be completed in 58 months from the day of allotment. The project is part of Prime Minister’s Development Package (PMDP) worth Rs 80,000 crore.

  • On July 8, 2018, Jaiprakash Associates Limited (JAL) had announced that it has bagged Rs 2853 crore contract from CVPP to construct diversion tunnel and concrete face dam for Pakal Dul project.

  • The 1000 MW project located over Marusadar river, a tributary of Chenab in Kishtwar district, is proposed to be completed in 66 months and will provide 12 per cent free power to Jammu and Kashmir. It aims to generate 3330.18 million units of electricity annually.

  • The Rs 8112.12 crore project will not only be the largest hydro electric power project in the State but also the first storage unit.

  • The project is expected to generate employment for 3,000 persons during construction phase and to 500 persons during operation stage. The Government of J&K will be getting 12 per cent free power after 10 years of commissioning of the project and water usage charges as applicable.

  • Additional 1 per cent free power will go towards Local Area Development Fund (LADF). Also, the State will have first right to purchase balance power, sources said.

  • It may be mentioned here that Jammu and Kashmir Government has already extended various concessions to Pakal Dul project. The Union Government has also sanctioned Rs 2500 crore subordinate loan for the project besides equity contribution of Jammu Kashmir State Power Development Corporation (JKSPDC) in the project. The NHPC Is extending technical support to the Company for tendering of the projects as well as for designing the project components, besides deputing experiences manpower required for construction of the projects.

  • Meanwhile, Legislative Assembly Speaker, Dr Nirmal Singh, who was Deputy Chief Minister Incharge Power Development Department in the previous PDP-BJP coalition Government, said that the Power Ministry had no role in allotment of the project works to any company.

  • “The project was being executed by CVPP and not by the Power Ministry,” he told the Excelsior when his comments were sought over cancellation of the work and concerns raised by the Governor.

  • Dr Nirmal Singh said the Government should hold high-level inquiry into the “fishy deals”, if any, to expose those involved in it. He maintained that the Power Ministry had nothing to do with allotment of the project.



 
Government eyes consolidation route to reach divestment goal 10/31/2018 12:00:00 AM
 
  • To kick-start consolidation in the power sector, the finance ministry has invited application for appointment of transaction advisor for concluding deals. The government and wants to complete the process involving mergers and acquisitions of state-owned entities immediately after end of assembly polls next month as it looks to reinvigorate the disinvestment plan that has remained sluggish with just over Rs 10,000 crore in receipts in November itself

  • The aim is to have a 4-month elbowroom when prized deals like NTPC’s takeover of Sutlej Jal Vidyut Nigam (SJVNL) and possibly NHPC would be concluded along with REC’s takeover of entire government equity in PFC.

  • Together the deals could provide over Rs 40,000 to the Centre and made up for 50 per cent of the Rs 80,000 crore disinvestment target set for FY19.

  • Despite efforts, disinvestment has remained sluggish in FY 19 with total proceeds for the government reaching Rs 10,028.81 crore by October 26.

  • Talking to Financial Chronicle earlier, the department of investment and public asset management (DIPAM) secretary Atanu Chakraborty had said the government intended to reach 50 per cent of disinvestment target by September and 75 per cent by November end. But the choppy market conditions have hit IPO plans of few companies, including three Railway PSUs. Offer for sale for up to 10 per cent government stake in over a half a dozen blue chip companies, including Hudco, NBCC, MMTC, Hindustan Copper, NMDC and Bharat Electronics (BEL) has also been put on the back burner.

  • “The market conditions remain volatile but M&A process could go ahead as it involves transfer of shares from one government entity to another. Transaction advisor for energy sector firms would be finalised by November-end and one-two deals could be wrapped up by December/January,” said a government official privy to the development.

  • SJVNL, a joint venture PSU, is 64.46 per cent owned by the Centre, 25.51 by Himachal Pradesh government and the balance by public.

  • At Tuesday’s closing price of Rs 28.15 on the BSE, the proposed share buyout may entail an investment of Rs 10,000 crore by NTPC. A top source confirmed that NTPC’s proposal in this regard remained active and would proceed further with DIPAM directions.

  • On NHPC, sources said proposal is still being discussed as it would involve big spend by NTPC. At current share price, 73.67 per cent government stake in NHPC is worth over RS 18,000 crore. “The government could push deal to FY20 to allow more time for NTPC to consider the option and mobilise resources,” said a source.

  • The plan for Power Finance Corporation (PFC) is to allow state-owned Rural Electrification Corporation (REC) to buy entire central government equity. PFC, a central sector PSU, is 65.61 per cent owned by the Centre and 34.39 per cent by public.

  • At Tuesday’s closing price of Rs 65.54 on the BSE, the proposed share buyout may entail an investment of Rs 16,000 crore by REC.

  • These deals for NTPC will help the PSU build upon its hydro potential that has seen slow progress so far. Of the total 49,943 mw installed capacity, NTPC has a mere 800 mw of commissioned hydro generation.

  • The PFC-REC deal could create a lending giant with combined bottom line of Rs 10,000 crore with consolidated annual income of over Rs 50,000 crore. This is expected to strengthen the entity that has seen a rise in non-performing assets due to stress in the power sector.

  • Carving out NTPC as the power behemoth may not be a solitary example of the policy push by the Narendra Modi government. Plans are afoot to merge large state-run oil PSUs into two large integrated companies. HPCL has already been merged with ONGC.

  • The government has also begun the consolidation process in the banking sector and recently approved mergers of few PSBs. The plan to merge three general insurance companies is also on the anvil.

  • Creation of large integrated enterprises in different sectors is being considered to provide depth to profitable CPSEs so that they could figure among top companies globally. Adding scale also help companies to play a dominant position in global markets and get better bargains on acquisitions of assets and other resources.



 
Nepal’s dry session power import from India to go up 10/25/2018 12:00:00 AM
 
  • Though rich in hydropower, crunched in production capacity, Himalayan country Nepal is going to increase its power import from India. While brightening Nepal’s dry winter time power profile, the trade will help India also in remaining as strong contender to explore the hilly nation’s huge untapped hydropower potential.

  • Nepal imports as high as 500 MW during peak hours. The figure is expected to shoot up much higher during next winter with the steady rise in Nepal’s power demand.

  • As Nepal Electricity Authority (NEA) Deputy Managing Director Rajeev Sharma puts it, “This import from India is too vital to handle the dry season demand of Nepal that is mostly hydropower dependent.”

  • Against Nepal’s peak electricity demand hovering at around 1300 MW, its generation capacity stands at around 1100MW. But, the output often goes lower than 60% during dry winter compelling the country to import power.

  • Both the countries have agreed to continue with existing Power Purchase Agreement till September 2019. The cross border power trade is done through Indian nodal agency NTPC Vidyut Vyapar Nigam (NVVN) and Nepal Electricity Authority.

  • Interestingly, “Seamless supply of this small amount of power to Nepal is important for India too. Stronger Indo-Nepal bondage developed with this can make India a stronger contender to grab power production contracts in the hilly country pushing others like China aside,” said experts in power trade sector.

  • Ironically, with 6,000 water streams, Nepal hosts 40 gigawatts of untapped potential. But, “It is not possible for Nepal alone to harness this,” said NEA officials.

  • “Any unutilized hydropower potential is a great loss. Nepal being physically and diplomatically so close, is a great place for India to explore,” said Debojit Chattopadhyay Executive Director NHPC.

  • According to a USAID supported study report ‘South Asia Regional Initiative for Energy Integration,’ Nepal hosts a cumulative investment potential of USD 36 Billion for the period till 2030. Here lies the opportunity for external power sector players including those from India. China is also equally keen on utilizing Nepal’s untapped hydropower potential and has already bagged contract to develop few plants there. Nepal has just revived a deal with a Chinese state-owned firm to construct a USD 2.5 billion hydroelectric plant, which had been scrapped earlier.



 
Tata, Adani Power surge up to 14percent as SC to examine tariffs 10/13/2018 12:00:00 AM
 
  • Shares of Tata Power Company (up 13.95 per cent), Reliance Infrastructure (up 9.32 per cent) and Adani Power (up 8.85 per cent) surged in Friday's session amid reports that the Supreme Court agreed to examine tariffs for Adani and Tata Power.

  • ET Now reported on Friday that the Supreme Court agreed to hear plea on tariff hike after two weeks and will examine them for Adani Power and Tata Power.

  • The BSE Power index was trading 3.13 per cent up at 1,955 around 1 pm with all components in the green.

  • Shares of CESC (up 7.70 per cent), JSW Energy (up 6.31 per cent), Suzlon Energy (up 5.22 per cent) and GMR Infrastructure (up 5.03 per cent) surged over 5 per cent.

  • Adani Transmission (up 4.98 per cent), KEC International (up 4.41 per cent), CG Power and Industrial Solutions (up 3.94 per cent), BHEL (up 3.83 per cent), Thermax (up 3.37 per cent), Torrent Power (up 3.24 per cent), NHPC (up 2.56 per cent), ABB India (up 2.32 per cent), Siemens (up 2.22 per cent), NTPC (up 1.07 per cent) and Power Grid Corporation of India (up 0.78 per cent) climbed in that order.

  • Benchmark BSE Sensex was up 735 points at 34,736, while the NSE Nifty50 index was up 229 points at 10,464.

  • Among the 50 stocks in the Nifty index, 47 were trading in the green, while three - Tata Consultancy Services (TCS), HCL Technologies and Dr. Reddy's Laboratories - were in the red.

  • In the 30-share Sensex index, barring TCS, all were in the green.

  • Mahindra & Mahindra, Maruti, Bajaj Auto, ITC and Kotak Mahindra Bank were leading among Sensex scrips at that time.



 
1,000 MW alternate transmission line to bring more power to J&K 10/13/2018 12:00:00 AM
 
  • Cutting through the snow-covered mountain peaks, gushing streams and dense pine forests, an alternative 1000 megawatt (MW) power transmission line was laid down in Jammu and Kashmir, expected to provide much-awaited relief to the perennial problem of power-cuts in the state.

  • After four years of arduous work, the 400 Kilovolt (KV) transmission line will provide an alternate power exchange route between Northern Grid and the State.

  • Earlier, the State was connected with the Northern Grid only through Kishenpur-Moga transmission line, passing through Pir Panjal range towards Wagoora and Wanpoh in Kashmir. Depended on a single link, the State would witness total darkness in case of any fault in the line.

  • Starting from Punjab’s Jalandhar towards Sambha in Jammu, the new line passes through the other face of Pir Panjal, famously known as Mughal road, which connects Jammu’s Poonch with Kashmir’s Shopian and ultimately reaches Amargarh in Sopore.

  • “This new line gives us an independent source of power in case the old transmission lines are down or get damaged due to snow avalanches. The line also passes from a different geography, covering more area,” said power development department (PDD) chief engineer (system & operation) Javaid Yousuf.

  • The 414 km transmission line which passes through 1000 villages in 11 districts of the region, is expected to augment the state’s power transmission capacity by atleast 33% which would bring a significant change in people’s lives, said Yousuf.

  • For a 24x7 uninterrupted electricity supply, the state needs around 2500 MW of power. However, the power situation in the state remains deficit as it is able to produce only 30 % within the state and procures the remaining 70 % through Northern Grid from NHPC which id able to produce around 2340 MW of power from the state’s water sources.

  • The situation is aggravated in winters when the water level in rivers decreases, reducing the local power production. For almost four months, the valley witnesses 10-12 hours of power cuts amid sub-zero temperature. Moreover, the weather damages the transmission lines which lead to blackouts in the state for several days altogether.

  • “Our power situation is going to improve a lot due to this transmission line. Logo ko bohat rahat milegi (People will benefit a lot),” Yousuf said.

  • In 2014, under the Northern Region System Strengthening (NRSS) project, the Union ministry had tasked Mumbai-based electric transmission development company Sterlite Power to install the transmission towers in one of most geographically hostile areas of the country.

  • “We completed the project in August this year, two months ahead of schedule, despite a small working window of 4-5 months every year due to snow and hostile weather conditions in Kashmir,” said Sterlite’s chief operating officer, Sanjay Johari.

  • Over 1,140 towers were erected in some of the most challenging terrains of Pir Panjal mountain range with over 11000 feet height amid below sub-zero temperature.

  • Overcoming the grid expansion challenge, in a first of its kind move, the company used helicopters to install the transmission tower across difficult terrain.

  • “We used helicranes to transport and airdrop nearly 80 towers in the mountains for 3-km stretch, therefore, were able to finish the project ahead of schedule,” said Johari.

  • The new transmission line comes with an advantage as well. Unlike the earlier lines, it can be monitored with the help of supervisory control and data acquisition (SCADA) system which would help the officials discover the faults and hence provide speedy renovations.

  • “This system allows us to identify failure easily, monitor it remotely and then send our helicopter teams to rectify it,” Johari said.

  • The state won’t be able to fully benefit from the new line unless there are sub-grid stations in the state. A sub-grid station, including transformers, is an essential part of the electricity distribution system to the consumers.

  • “We need grid augmentation to use the power from the new line,” said PDD chief engineer Hashmat Qazi.

  • “We are waiting for the Alastaing grid station to be completed by the end of this year. Another grid station at Delina at Baramulla is also being augmented. We would be able to distribute electricity only when our local networks improve,” he said.



 
1,000 MW alternate transmission line to bring more power to J&K 10/12/2018 12:00:00 AM
 
  • Cutting through the snow-covered mountain peaks, gushing streams and dense pine forests, an alternative 1000 megawatt (MW) power transmission line was laid down in Jammu and Kashmir, expected to provide much-awaited relief to the perennial problem of power-cuts in the state.

  • After four years of arduous work, the 400 Kilovolt (KV) transmission line will provide an alternate power exchange route between Northern Grid and the State.

  • Earlier, the State was connected with the Northern Grid only through Kishenpur-Moga transmission line, passing through Pir Panjal range towards Wagoora and Wanpoh in Kashmir. Depended on a single link, the State would witness total darkness in case of any fault in the line.

  • Starting from Punjab’s Jalandhar towards Sambha in Jammu, the new line passes through the other face of Pir Panjal, famously known as Mughal road, which connects Jammu’s Poonch with Kashmir’s Shopian and ultimately reaches Amargarh in Sopore.

  • “This new line gives us an independent source of power in case the old transmission lines are down or get damaged due to snow avalanches. The line also passes from a different geography, covering more area,” said power development department (PDD) chief engineer (system & operation) Javaid Yousuf.

  • The 414 km transmission line which passes through 1000 villages in 11 districts of the region, is expected to augment the state’s power transmission capacity by atleast 33% which would bring a significant change in people’s lives, said Yousuf.

  • Bringing down power deficiency

  • For a 24x7 uninterrupted electricity supply, the state needs around 2500 MW of power. However, the power situation in the state remains deficit as it is able to produce only 30 % within the state and procures the remaining 70 % through Northern Grid from NHPC which id able to produce around 2340 MW of power from the state’s water sources.

  • The situation is aggravated in winters when the water level in rivers decreases, reducing the local power production. For almost four months, the valley witnesses 10-12 hours of power cuts amid sub-zero temperature. Moreover, the weather damages the transmission lines which lead to blackouts in the state for several days altogether.

  • “Our power situation is going to improve a lot due to this transmission line. Logo ko bohat rahat milegi (People will benefit a lot),” Yousuf said.

  • Project completed two months ahead of schedule

  • In 2014, under the Northern Region System Strengthening (NRSS) project, the Union ministry had tasked Mumbai-based electric transmission development company Sterlite Power to install the transmission towers in one of most geographically hostile areas of the country.

  • “We completed the project in August this year, two months ahead of schedule, despite a small working window of 4-5 months every year due to snow and hostile weather conditions in Kashmir,” said Sterlite’s chief operating officer, Sanjay Johari.

  • Over 1,140 towers were erected in some of the most challenging terrains of Pir Panjal mountain range with over 11000 feet height amid below sub-zero temperature.

  • Aircrane helicopters deployed

  • Overcoming the grid expansion challenge, in a first of its kind move, the company used helicopters to install the transmission tower across difficult terrain.

  • “We used helicranes to transport and airdrop nearly 80 towers in the mountains for 3-km stretch, therefore, were able to finish the project ahead of schedule,” said Johari.

  • The new transmission line comes with an advantage as well. Unlike the earlier lines, it can be monitored with the help of supervisory control and data acquisition (SCADA) system which would help the officials discover the faults and hence provide speedy renovations.

  • “This system allows us to identify failure easily, monitor it remotely and then send our helicopter teams to rectify it,” Johari said.

  • Need sub-grid stations

  • The state won’t be able to fully benefit from the new line unless there are sub-grid stations in the state. A sub-grid station, including transformers, is an essential part of the electricity distribution system to the consumers.

  • “We need grid augmentation to use the power from the new line,” said PDD chief engineer Hashmat Qazi.

  • “We are waiting for the Alastaing grid station to be completed by the end of this year. Another grid station at Delina at Baramulla is also being augmented. We would be able to distribute electricity only when our local networks improve,” he said.



 
UT to cut down power losses to 13percent 10/9/2018 12:00:00 AM
 
  • The UT electricity department has planned to bring down transmission and distribution (T&D) losses to 12.65% by 2021-22 financial year. The UT electricity department in its multi-year tariff (MYT) petition submitted before the joint electricity regulatory commission (JERC), have submitted the target.

  • Recently, the JERC had refused to entertain UT power department’s plea wherein the UT had expressed their inability to cut down the losses below the limit approved by the JERC. But, the commission in its latest order had rejected UT’s plea. In the MYT petition, the department has submitted that the T&D loss for the financial year 2016-17 was 13.65%, which will be reduced to 13.05% (2019-20) , 12.85% (2020-21) and 12.65% (2021-22).

  • As per the directions of the commission, T&D losses of Chandigarh should not be more than 13.25%. The department has been taking a plea that the high T&D losses have occurred due to non-availability of interstate transmission point within boundaries of Chandigarh and metering is done at 400KV (Nalagarh), 220KV (Mohali) and 220KV (Dhulekote).

  • Meanwhile, the commission was of the view that the intra-state distribution loss in the similar urban distribution companies, like BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Ltd (BYPL), Tata Power Mumbai, where majority of the sales is happening in domestic is lower than the intrastate distribution loss of the UT power department. There is significant potential of intra-state distribution loss reduction in Chandigarh. The electricity department caters to 2.28 lakh consumers divided into nine different categories. As per the official figures, of total consumers 1.99 lakh are domestic, which accounts to more than 87% of total consumers. Remaining 23 % belongs to other categories namely commercial, small power, medium supply, large supply, bulk supply, public lighting, agriculture power and temporary supply.

  • Also, Chandigarh does not have its own power plant and buys 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.



 
Five power sector stocks with substantial one-year growth potential 10/8/2018 12:00:00 AM
 
  • The power sector is showing signs of recovery after a few years of poor performance due to excessive supply, low prices on power exchanges, slow policy implementation and lack of power purchase agreements (PPAs).

  • In the last two years, the BSE Utility index has underperformed the Sensex by over 1.8 times and over 61 per cent of constituent stocks of the BSE Utilities index have delivered negative returns. The current recovery is led by a widening demand and supply gap. Power demand peaked to nearly 10GW this year but with no new capacity addition, supply has lagged.

  • Moreover, power consumption is rising in states like UP, MP and Bihar and that is likely to improve the sector’s plant load factor (PLF). PLF is the ratio between the actual energy generated by a plant and its maximum possible generation capacity. A supply glut and lack of demand from industrial consumers over the last few years had created a demand-supply mismatch. This resulted in stranded capacities and falling PLFs in the thermal power sector.

  • With improvement in demand, the PLFs are expected to rise. Rising PLFs will boost prices at the power exchange and will be positive for long-term PPAs. Although the share of renewable energy sources like solar and wind power are also rising, the demand cannot be met without the support of conventional energy sources.

  • On the policy front, thanks to the Ujwal Discom Assurance Yojana (UDAY), the financial health of state electricity distribution companies (discoms) have improved over the last couple of years. The scheme has helped discoms pare down losses to Rs 19,000 crore in 2017-18 from Rs 51,600 crore in 2015-16. On the other hand, supply of coal to the power sector is improving and is evident from the rising inventory of power plants. Availability of coal will take care of fuel related challenges and will provide a boost to the power sector.

  • Brokerage houses like SBICap, Reliance Securities and Emkay are positive on the sector as past underperformance has made valuations attractive. Most companies in the sector have witnessed a modest cut in their 2018-19/2019-20 financial estimates, despite considerable correction in share prices.

  • The Indian markets are turning volatile due to a host of macroeconomic factors like oil prices, weak currency and worsening government finances. Power sector stocks could prove good defensive picks as macro concerns have minimal impact on the sector. Twenty two of the 32 companies on the BSE Utility index are covered by Bloomberg analysts. There are a total of 344 recommendations on these 22 stocks. Of these, 237 (68.9 per cent) are buy, 61 (17.7 per cent) are hold and 46 (13.4 per cent) are sell recommendations.

  • Let us look at the five stocks that have decent buy recommendations and substantial one year growth potential

  • Tata Power

  • This company’s core business is generating, transmitting and distributing power. Ashika Stock Broking is bullish on the stock because of the company’s focus on enhancing its portfolio of non-fossil fuel based power and efforts to reduce debt. The company has undertaken steps to revive its troubled 4,000 MW Mundra plant, which will improve its fundamentals going forward. According to Bloomberg consensus estimates, the stock price may gain 34 per cent over the next year

  • CESC

  • This power utility company is engaged in the generation and distribution of electricity. Emkay is bullish on CESC due to its attractive valuations. The brokerage house expects the pending demerger process to be value accretive and unlock value for the company’s business verticals. In addition, impending turnaround in Spencer Retail, a CESC subsidiary, will provide further growth trigger. According to Bloomberg consensus estimates, the stock price may grow by 31 per cent over the next one year period.

  • NHPC

  • A government enterprise with Mini Ratna status, it is engaged in electricity generation using hydroelectric plants. According to a report by Motilal Oswal, lower under recoveries and capital cost approvals are likely to boost earnings in future. In addition, the company has low regulatory risk with high growth potential due to the large untapped water energy potential in India. According to Bloomberg consensus estimates, the stock price may gain by 28 per cent over the next one year.

  • Power Grid Corporation

  • The Navaratna PSU is engaged in power transmission with responsibility of planning, implementation, operation and maintenance of the Inter-State Transmission System. According to a report by Reliance Securities, Power Grid is least exposed to operational risks and offers a safe bet in the high growth power transmission sector. The company’s earnings are likely to grow by 20 per cent CAGR over the next two years, aided by higher capitalization, huge capex pipeline, steady regulated RoE and healthy order book.

  • NTPC

  • This PSU with Maharatna status is engaged in electricity generation and allied activities. SBICap Securities is bullish on the stock as it believes the company has enough levers to defend its RoE and it remains best placed to address issues of PPA and fuel unavailability. The brokerage house expects the company’s strong capacity addition pipeline to drive growth in profitability over the next two years. According to Bloomberg consensus estimates, the stock has a potential to grow 13 per cent over the next year.



 
No 5percent regulatory surcharge on FPPCA charges for Chandigarh: JERC 10/1/2018 12:00:00 AM
 
  • In a major relief to the city residents, the Joint Electricity Regulatory Commission (JERC) directed the UT electricity department not to slap 5% regulatory surcharge on fuel and power purchase cost adjustment (FPPCA) charges.

  • The FPPCA charges are the difference between per unit actual cost of power purchase and per unit approved cost of power purchase. The charge is added on a per-unit basis to each electricity bill over and above the regular tariff. The UT electricity department bi-monthly generates bills for domestic customers and monthly for commercial and industrial consumers. The charges are revised after every quarter.

  • In its tariff order issued on March 29, the JERC had imposed a cap on FPPCA charges to be levied by the department from April onwards. The commission had limited FPPCA charge to 10% of the approved cost for a quarter. The commission had also directed UT electricity department to charge 5% regulatory surcharge on the total bill.

  • However, the department had sought clarification from the commission on slapping 5% regulatory surcharge on FPPCA as well, which is now denied by the commission.

  • 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 into 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.



 
NHPC gets shareholders' nod to raise Rs 3,300 cr via bonds 9/29/2018 12:00:00 AM
 
  • State-owned hydro power giant NHPC has received shareholders' approval to raise Rs 3,300 crore through issuance of bonds in its annual general meeting held on Friday.

  • The proposal to issue of secured I unsecured, redeemable, non-convertible debentures I bonds special aggregating up to Rs 3,300 crore through private placement is approved in the AGM held on Thursday with requisite majority, a BSE filing said.



 
NHPC moves SC against Delhi High Court order on arbitral award 9/24/2018 12:00:00 AM
 
  • The National Hydroelectric Power Corporation (NHPC) has moved the Supreme Court against the order of a larger Bench of the Delhi High Court refusing to interfere with an earlier decision asking it to pay 75 per cent of an arbitral award granted in favour of a construction company.

  • NHPC has challenged the September 13 order of a division bench of the high court which had dismissed its appeal against the single judge bench order asking it to either pay the arbitral amount to Hindustan Construction Company Limited or deposit Rs 40 crore, 75 per cent of the money, with the registry of the high court.

  • The PSU alleged that the high court failed to appreciate the pre-requisite conditions which were to be fulfilled by the construction firm for releasing the payment.

  • "The court had overlooked the guidelines formulated by NITI Aayog in its various circulars for release of amount to the contractors during pendency of challenge to arbitration awards," the PSU said.

  • An arbitral award was passed in favour of the construction firm on May 6, 2016.

  • NHPC had challenged the same in a trial court which had later transferred the case to the Delhi High Court on April 17 this year.

  • NHPC claimed that the firm has not yet complied with the requirements issued by NITI Aayog in order to claim the benefits of the award.

  • NITI Aayog had in 2016 issued an office memorandum listing various measures to revive the construction sector.



 
Coal India, NTPC among 11 CPSEs shortlisted for share buyback 9/8/2018 12:00:00 AM
 
  • The Finance Ministry has shortlisted about a dozen companies, including Coal India, NTPC, NALCO and NMDC, for a possible buyback of shares in the ongoing financial year.

  • The other companies which are in the list include NLC, BHEL, NHPC, NBCC, SJVN, KIOCL and Hindustan Aeronautics, officials said.

  • Earlier this week, the Department of Investment and Public Asset Management (DIPAM) discussed buyback option with these companies, following which the list has been drafted.

  • These CPSEs have been asked to buyback the shares following the capital restructuring guidelines set out by DIPAM on May 27, 2016.

  • Officials however said in view of the business plans of CPSEs, not all in the list would be able to buyback the shares in 2018-19.

  • As per the guidelines, CPSEs having net worth of at least Rs 2,000 crore and cash and bank balance of above Rs 1,000 crore have to mandatorily go in for share buyback.

  • It had also asked every CPSE to analyse in the first board meeting after the closure of a financial year the cash and bank balance, expansion plans, borrowing plans, net worth and market value of shares and explore option for buying back of shares.

  • Share buybacks offer a route for companies to return some wealth to their shareholders, while potentially boosting their stock prices.

  • In a share buyback, a company will absorb or retire the repurchased shares, and rename them treasury stock.

  • Buying back stock is also a route to make a business look more attractive to investors. By reducing the number of outstanding shares, a company's earnings per share ratio is automatically increased.



 
Governor for taking benefit of flagship central schemes to improve JK’s power scenario 9/7/2018 12:00:00 AM
 
  • Governor Satya Pal Malik today called for taking maximum benefit from the flagship power sector schemes of the Government of India to ensure tangible improvement in electricity supply to the consumers in the State.

  • “With adequate central funding available under various schemes for universal power coverage, the state’s Power Development Department (PDD) should take every measure to extend electricity supply to the remotest corners of the State,” Governor said while jointly reviewing with the Union Minister of State for Power (Independent Charge), R K Singh progress on implementation of flagship central power sector schemes in the State at a high-level meeting at SKICC here today.

  • Governor desired that PDD should make judicious and timely use of the available funds to ensure augmentation of power generation and upgradation of transmission and distribution network in the State.

  • He desired that PDD should ensure uninterrupted power supply especially during festivals and examinations of the students in the areas which are facing recurrent power woes. He asked the PDD to ensure round-the-clock electricity supply to at least such areas which are covered under cent percent metering and where the revenue realization is above 95%.

  • Advisor to Governor, B B Vyas, Chief Secretary, BVR Subrahmanyam, Union Joint Secretary Power (Distribution), Arun Verma,CMD, Rural Electrification Corporation, PV Ramesh, CMD, Power Finance Corporation, Rajiv Sharma, CMD, Power Grid Corporation of India Ltd, IS Jha, CMD, NHPC, Balraj Joshi, Financial Commissioner & Chairman, CVPPPL, KB Aggarwal, Principal Secretary Finance, Navin Kumar Choudhary, Principal Secretary to Governor, Umang Narula, Principal Secretary, Planning, Development & Monitoring, Rohit Kansal, OSD in PMO (SAUBHAGYA), PS Ahmad, Commissioner/Secretary PDD, Hirdesh Kumar, Secretary Science & Technology, Sheikh Fayaz Ahmad, Development Commissioner, Power J&K, Executive Director, IRCON, Subash Chand, HoDs of PDD and other senior officers attended the meeting.

  • Governor and the Union Minister took a detailed review of R-RAPDRP, SAUBHAGYA, IDP, PMDP, DDUGJY and RGGVY and sought project-wise details regarding implementation of each scheme.

  • Speaking on the occasion, Union Power Minister complimented the Jammu and Kashmir Government for making remarkable progress over the past few months in meeting targets on electrification of unelectrified villages. He said the encouraging momentum needs a renewed push to ensure tangible overall improvement in electricity supply scenario through upgradation of basic power infrastructure in the State.

  • “Pestering power crisis has been one of the major areas of concern in J&K and the Central Government is ready to walk extra mile by way of whatever support is needed to end this lingering problem in the State,” he said.

  • The Union Minister called for expediting the measures to overcome the power scarcity in the State with a sense of urgency and in a coordinated manner. He underlined the need for upgrading overall power infrastructure in a time-bound manner with focus on augmenting generation in the state sector, improving transmission and distribution network, bringing down T&D losses and expeditious completion of on-going schemes. At the same time, he said, concerted efforts should be made to improve revenue realization and check pilferages through technological interventions including installation of smart metres.

  • The Minister said that it was heartening to note that individual domestic consumers in J&K are the biggest contributors to the state’s power revenues.

  • He said the endeavour of the Government of India to provide electricity to every household by March 2019 and it is satisfying to note that Jammu and Kashmir is ahead of schedule in achieving the targets. He called for giving wide publicity to the achievements in this regard through print and electronic media so that the people across the country know about the impressive performance of J&K Government on this front. He ordered release of Rs 200 crore to J&K for meeting the immediate requirements under SAUBHAGYA scheme.

  • The Union Minister assured adequate funds for replacement of outlived power infrastructure, adding that efficient infrastructure is must for efficient energy and directed the Commissioner/Secretary PDD, J&K to immediately undertake such exercise and carryout upgradation of worn-out infrastructure.

  • To give grid connectivity to Gurez and Tulail Valleys, the Union Minister also given his approval for undertaking a double circuit 132kV line on tower structures from Bandipora to Dawarin Gurez and single circuit 132kV line from Dawarto Tulail and two no. 132/33kV sub stations, 20 MVA each at Gurez and Tulail under PMDP at a tentative cost of Rs. 294.63 Cr as proposed by the State Government.

  • Commissioner/Secretary Power, Hirdesh Kumar Singh in power point presentation gave overview of the status of on-going projects. He informed that all 102 un-electrified villages have been electrified before the stipulated timeline under DDUGJY and RGGVY XII thus covered over 98 per cent villages and rest will be covered by ending December, 2018, he added.

  • It was informed that under R-APDRP Rs. 504.54 crore were received out of which Rs 367. 88 crore spent till 31-08-2018. Similarly, under IPDS Rs 37.99 crore were received out of which Rs 6.33 crore incurred. Under IPDS (PMDP-Urban), Rs 327.67 crore received and Rs 11.42 spent. Under DDUGJY an amount of Rs 117.29 crore received and Rs 40.41 crore spent. Under SAUBHAGYA Rs 34.02 received and Rs 21.55 spent. Under DDUGJY (PMDP-Rural) an amount of Rs. 179.75 crore received and Rs. 12.89 crore by ending August, 2018.



 
NHPC Opens Power Trading Cell in Faridabad 9/7/2018 12:00:00 AM
 
  • NHPC Limited, India’s premier hydropower company has established a new ‘Power Trading Cell’ at its Corporate Office at Faridabad. The cell was inaugurated by Shri Balraj Joshi, CMD, NHPC in the presence of Shri Ratish Kumar, Director (Projects), Shri N.K. Jain, Director (Personnel), Shri M.K. Mittal, Director (Finance), Shri Janardan Choudhary, Director (Technical), Shri Ved Prakash, CVO and other senior officers of NHPC on 30th August 2018.

  • The new fully equipped Power Trading Cell will enable NHPC to operate its trading business in the Power Exchange (Indian Energy Exchange) for the trade of power on a 24 x 7 basis. NHPC has already been granted Category-I license for interstate trading in Electricity throughout India by CERC. NHPC has also obtained trade membership in Indian Energy Exchange.



 
Govt bets on power sector to meet divestment target 8/21/2018 12:00:00 AM
 
  • With a strategic sale of public sector companies such as Air India (AI), Hindustan Copper and Mecon off the table until next summer’s general elections, the government is eyeing state-run players in the power sector to replicate the ONGC-HPCL model to buy out its stake and also contribute to the “disinvestment” kitty.

  • While discussions have begun, the list of companies is yet to be finalised with Satluj Jal Vikas Nigam (SJVNL) seen as a possible candidate, a source told TOI. One option is to get NHPC to acquire the Centre’s 63.8% in SJVNL, a joint venture with the Himachal Pradesh government, an official said.

  • But others reckon that it may not be the best choice as the NHPC management is seen to be laid back. Instead they find NTPC a better bet given that it has a team that is focused on hydel energy. At the same time, the Himachal Pradesh government’s shareholding does not make it an automatic choice for the sell-off experiment.

  • The discussions come at a time when the government has garnered a little over Rs 9,000 crore of its disinvestment target of Rs 80,000 crore for the financial year and is hoping to replicate last year’s experience of mopping up a record Rs 1 lakh crore, which was aided by the Rs 37,000 crore that came from ONGC’s acquisition of the Centre’s majority stake in oil marketing firm Hindustan Petroleum (HPCL).

  • While close to a dozen public sector companies, mainly loss-making ones, is in the queue for divestment, over the next few weeks, construction player NBCC is expected to acquire Hospital Services Consultancy and Engineering Projects (India), where it has emerged the highest bidder in a marriage that was arranged by the government.

  • NBCC, which has bagged several high-profile government projects, plans to run the companies as wholly owned subsidiaries for the time being, and it does not see the need to get rid of manpower. “In fact, the companies may need people,” said a source, adding that the NBCC is hoping to turn the two ailing entities profitable over the next couple of years.

  • The government’s rush towards the power sector comes as it seeks to meet the year’s divestment target at a time when there is pressure on revenue and there is little scope to pare spending.



 
When J&K rejected loan offer for biggest power project 8/14/2018 12:00:00 AM
 
  • One of the reasons given by state authorities for contemplating to rope in yet another central PSUs for developing the 1856-MW Sawlakote hydropower project has been the “lack of substantial resources” with the government. The issue was discussed last October by top officials from Union water resource ministry with a five-member Group of Ministers (GoM) led by then power minister Nirmal Singh.

  • But what the meeting didn’t discuss and what the government sat over for years has been an offer of around Rs 30,000 crore loan the state Power Development Corporation (PDC) from two central financial institutions—Power Finance Corporation (PFC) and Rural Electrification Corporation Limited (REC)— to develop Sawlakote and three other projects in the state sector, conceived decades ago.

  • Official documents accessed by Greater Kashmir reveal that more than two years before central power ministry actually cleared Sawlakote, the largest ever hydropower project to be executed in J&K, the REC had on 20 January 2016 offered to fund 70 percent of total cost of the project in the form of loan.

  • Apart from Sawlakote, a senior official said, the REC had offered financial assistance for executing three more projects: 93-MW Ganderbal, 390-MW Kirthai-I and 930-MW Kirthai-II.

  • While construction cost of these four projects would require an investment of around Rs 33,000 crore, the debt component will be around Rs 22,000 crore on 70:30 debt-equity ratio.

  • “Sadly, the government hasn’t taken any decision on the offer despite reminders from the company,” said a senior official.

  • He quoted a senior official from REC apprising the PDC “recently” that the Corporation can still avail the offer.

  • “The PDC has proven its credibility by establishing 900-MW Baglihar projects. It gets offers from different financial institutions which are ready to fund hydropower projects in the state, but the final call has to be taken by the government which has always shown cold shoulder,” said the official.

  • After sitting on the offer, the state government is now mulling to clear entry of central hydropower company, SatlujJalVidyut Nigam Ltd (SJVNL), for setting up of Sawlakote in joint venture with the PDC.

  • The government of India’s National Hydroelectric Power Corporation (NHPC), another central public service undertaking (CPSU), is already operating eight projects in J&K. In a joint venture with PDC, the NHPC is setting up three more power projects with capacity of Rs 2100-MW on Chenab basin.

  • On the other hand, there is no progress on construction of the three other projects for which government has already received all clarifications from power ministry.

  • The PDC officials have raised apprehensions that these projects might too fall in the kitty of the SJVNL and hence it would walk away with share of generation from the projects.

  • The RECs offer wasn’t the only one the state didn’t take. Prior to it, the PFC had agreed in principle to provide loan assistance of Rs 12810 crore (70 percent cost of total project then) to the PDC for developing Sawlakote, which was originally conceived in 1964.

  • “This offer too didn’t materialise as the government didn’t respond to the communication,” said the PDC official.

  • “One fails to understand why state government preferred silence before union water resource and power ministries about standing offers from financial institutions for execution of Sawlakote and other projects,” said the official.

  • Apart from central financial institutions, in 2015, the Gulf-based lending institution ENAAR CAPITAL had also shown interests to fund the state power project. The investment banking firm which has a representative in Mumbai had written to then J&K Chief Minister on 26 October 2015, agreeing to provide loan assistance for the projects.

  • “It had however asked the government to arrange guarantee from premier financial institutions for securing the loan. The offer was given a silent burial,” the official said.

  • For past several years successive state governments have made claims for developing hydropower projects worth 5000-MW in the state sector. But the government has failed to translate these assurances into action on the ground.

  • At present the state has 22 power projects owned by the PDC with capacity of 1211-MW. It imports more than 1200-MW from northern grid to meet the energy requirements in the state. The long delay in execution of the projects, some of them conceived prior in the 80s, has doubled their cost.



 
No formal communication on government's NHPC stake sale: NTPC 8/2/2018 12:00:00 AM
 
NTPC has not received any formal communication yet on government's reported plans to sell its stake in hydropower producer NHPCNSE -0.84 % to the state-run power utility to meet its disinvestment target for this fiscal year. "Till now there is no formal communication from the government (on the issue)," said Gurdpeep Singh, chairman and managing director, NTPC. He, however, added that "any deal is a good deal if it is at the right price," indicating that the power utility will be open to acquire its hydropower peer if the government firms up its plans. According to reports in a section of media, the government is discussing a plan to sell it stake in NHPC to NTPC, which if goes through, will bring consolidation in the state-run energy firms besides helping it stick to the budget gap target. NTPC reported 1.14 per cent decline in standalone net profit to Rs 2,588.14 crore for the quarter ended June, due to higher depreciation, borrowing cost and expenditure on fuel. The company's total revenues in the quarter, however, rose 11 per cent to Rs 22,839.98 crore, from Rs 20,541.93 crore in the year-ago period. The power giant also recorded its highest quarterly power generation of 69.2 billion units (BU) in the April to June period, a 7.45 per cent rise over the year-ago period. On the company's borrowing plans for FY19, Singh said that the total planned capex will be to the tune of Rs 23,000 crore. "Of this, 30 per cent will come through internal accruals and the rest will be raised from the market,"he said. On whether the company was looking to acquire some of the stressed assets in the power sector, Singh said, "There are around 10,000-12,000 MW of good assets and there is also an equal amount of power which are not good assets. So, we should be very careful about which assets to look at and which to ignore." The company has a total installed capacity of 53,651 MW from its 21 coal-based, seven gas-based, 11 solar PV, one hydro, one small hydro, one wind and nine subsidiaries/joint venture power stations. NTPC is currently implementing an additional capacity of around 20,000 MW at various locations.


 
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