“NHPC bagged 1000 MW Capacity Solar Power Project at a Viability Gap Funding (VGF) of Rs. 44.90 Lakh/MW under CPSU Scheme, Phase-II, Tranche-III in the e-Reverse auction conducted by Indian Renewable Energy Development Authority (IREDA) on 23rd September’21. Further, EPC contracts have been awarded for development of the project and transmission line for power evacuation to ISTS sub-station along with comprehensive operations and maintenance for 5 years.”
-R. P. Goyal, Director (Finance)
| Ticker | NHPC |
| Industry | Energy |
| Exchange | NSE & BSE |
| Last 1 Month | 3.6% |
| Last 6 Months | 14.5% |
| Last 12 Months | 44.2% |
Business Basics
NHPC Limited, formerly known as National Hydroelectric Power Corporation, is a leading public sector company in the field of hydroelectric power generation. It is involved in the planning, development, and execution of hydroelectric power projects in India. NHPC’s primary focus is on harnessing the country’s abundant hydroelectric potential and contributing to the growth of clean and renewable energy. NHPC operates through various stages of project development, including the identification of potential sites, feasibility studies, detailed project reports, design, construction, operation, and maintenance of hydroelectric power projects. The company has a diverse portfolio of projects across different states in India, ranging from small to large-scale hydroelectric power plants.
NHPC’s key business activities include the generation and sale of hydroelectric power to various state utilities and entities, as well as trading in power through power exchanges. The company also offers engineering, procurement, and construction (EPC) services for hydroelectric projects. NHPC’s expertise lies in the design and execution of complex hydroelectric projects, utilizing advanced technologies and sustainable practices. Apart from company’s core business of hydroelectric power generation, NHPC is actively involved in the development of other renewable energy sources such as solar and wind power
As a central public sector enterprise under the Ministry of Power, NHPC plays a vital role in the development of India’s power sector. It strives to maintain operational excellence, adhere to high standards of corporate governance, and prioritize environmental sustainability in its operations. NHPC’s strong commitment to sustainable development, coupled with its technical expertise and long-standing experience, positions it as a key player in the Indian power sector and contributes to the country’s energy security and clean energy transition.
Q4 FY23 Financial Performance
NHPC Limited reported Total Income for Q4FY23 of ₹2,228.68 Crores up from ₹2,026.62 Crore year on year, a rise of 10%. Consolidated Net Profit of ₹719.18 Crores, up 39.4% from ₹515.90 Crores in the same quarter of the previous year. The Earnings per Share is ₹ 0.64 in this quarter.
NHPC’s Installed Projects
NHPC had an installed capacity of approximately 7,071 megawatts (MW). One notable project is the Indira Sagar across Narmada river, located in Madhya Pradesh, with an installed capacity of 1,000 MW. This hydroelectric projects serves multiple purposes such as power generation, irrigation, and water supply. Another significant project is the Dul Hasti Hydroelectric Power Plant in Jammu and Kashmir, which has an installed capacity of 390 MW. It utilizes the Chenab River for electricity generation.
The Uri Hydroelectric Power Project in Jammu and Kashmir, with a capacity of 480 MW & 240 MW, comprises the Uri-I and Uri-II power stations respectively that harness the waters of the Jhelum River. NHPC’s Subansiri Lower Hydroelectric Project in Arunachal Pradesh, with an installed capacity of 2,000 MW, is designed as a run-of-the-river scheme. It aims to utilize the water potential of the Subansiri River for power generation. Additionally, NHPC has developed projects like Kishanganga, Parbati, and Loktak, among others, contributing to India’s renewable energy goals.
NHPC’s Under Construction Projects
NHPC is currently building several projects with a total capacity of 9,314 MW. These initiatives are situated in Sikkim, Himachal Pradesh, Arunachal Pradesh, and other places. The Subansiri Lower Hydroelectric Project, which is situated in Arunachal Pradesh, is the most advanced of these initiatives. This project on the Subansiri River is a run-of-the-river project with a 2,000 MW capacity. The project is currently 95% finished, and commissioning is scheduled for 2023.
The other under construction projects are:
- Parbati II Hydroelectric Project (800 MW)
- Dibang Hydroelectric Project (2,880 MW)
- Kiru & Kwar Hydroelectric Project (624 & 540 MW)
- Teesta VI & Rangit VI Hydroelectric Project (500 & 120 MW)
- Ratle & Pakal Dua Hydroelectric Project (850 & 1000 MW)
These projects are all at various stages of completion and are expected to be commissioned between 2023 and 2026.
Scenario Of Hydroelectric Power in India
In India, hydroelectric power accounts for about 12% of the nation’s installed capacity, making it a significant source of electricity. India is thought to have a hydroelectric potential of 148,700 MW. However, only a small portion of this potential—about 46,000 MW—has been realized thus far. By 2030, the Indian government wants to install 50,000 MW of hydroelectric capacity. The government is concentrating on the creation of pumped storage hydroelectricity projects in order to meet this goal. In order to produce electricity, pumped storage hydroelectricity stores water in a reservoir during off-peak hours and releases it during peak hours. In India, pumped storage is gaining popularity as a means of grid stability and storing renewable energy.
Hydroelectric power has been a prominent component of India’s energy portfolio, contributing significantly to the country’s electricity generation. India boasts a substantial existing hydroelectric capacity, with several notable projects driving power generation. Among these, the Bhakra Nangal Dam stands as a prominent example. Situated on the Sutlej River in Himachal Pradesh, it is one of India’s largest multipurpose dams, providing hydroelectric power generation along with irrigation and flood control benefits. The dam’s power station has a capacity of over 1,300 megawatts (MW) and has been instrumental in meeting the electricity demand of northern states.
Looking ahead, there is immense potential for further development of hydroelectric power in India. With its vast network of rivers, including the Ganges, Brahmaputra, and Godavari, India has untapped hydroelectric resources waiting to be harnessed. The government has identified several hydroelectric projects for future development, both large and small, to further augment the country’s clean energy capacity.