A state-run Mini Ratna PSU has drawn investor attention with its ambitious plan to scale up hydropower capacity to 22 gigawatts (GW) by FY34. This move highlights the company’s focus on expanding clean energy infrastructure and supporting India’s renewable energy goals over the next decade.
Price Action
During Friday’s trading session, shares of NHPC Ltd reached an intra-day high of Rs.84.90 each, rising slightly from the previous closing price of Rs.84.53 per share. However, the shares retreated slightly and closed at Rs.83.49 apiece. Over the past five years, the stock has delivered over 320 percent returns.
What Happened
NHPC is moving forward with major investments in hydropower, pumped storage projects (PSPs), and other green energy initiatives as part of its long-term growth strategy. The company plans to increase its hydropower capacity from the current 7.3 gigawatts (GW) to 22 GW by FY34. In addition, NHPC aims to develop approximately 20 GW of cumulative PSP capacity, largely in partnership with state government-backed entities.
According to NHPC Chairman and Managing Director Raj Kumar Chaudhary, the company intends to invest around Rs.84,000 crores to build this PSP capacity, with the total capital expenditure expected to reach nearly Rs.1.2 trillion. These projects are aligned with India’s clean energy goals and will significantly boost NHPC’s presence in the renewable sector.
Moreover, NHPC is also planning to list its subsidiary, NHPC Renewable Energy Ltd, by FY27. This move will come after the company achieves a significant scale in its green energy portfolio, further strengthening its commitment to sustainable energy and expanding its investor base.
Current Capacity
NHPC currently has an installed capacity of 7,097.2 MW from renewable sources, including wind and solar, across 25 power stations, with 1,520 MW coming from its subsidiaries.
The company has set ambitious goals to expand its capacity, aiming for a total of 23 GW by 2032 and more than 50 GW by 2047. By 2026-27, NHPC plans to increase its installed capacity to 14,561.2 MW, adding 7,417 MW through hydro and solar power projects.
NHPC also intends to allocate over Rs.8,000 crore in capital expenditure for FY26, primarily focusing on the development of 1,620 MW of hydroelectric capacity and approximately 1,490 MW of solar projects.
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Joint Ventures and Projects
NHPC has partnered with the Andhra Pradesh government to develop pumped storage projects (PSPs) through a joint venture called ANGEL (APGENCO NHPC Green Energy Company). This collaboration includes two PSPs with a combined capacity of 2 GW, such as the 1 GW Yaganti project and the 800 MW Rajupalem project. The total capacity of these projects could potentially reach 6 to 8 GW.
In Gujarat, NHPC has signed a Memorandum of Understanding (MoU) with Gujarat Power Corporation Limited (GPCL) to invest approximately Rs. 4,000 crore in the 750 MW Kuppa Pumped Hydro Storage Project in Chhota Udaipur, with investments expected to begin in 2024/25.
Financial Performance
Turning towards the financials of the company, NHPC Ltd reported Q3 FY25 revenue of Rs.2,287 crore, rising 11 percent from Rs.2,056 crore in the same quarter last year. However, Profit After Tax (PAT) decreased by 47 percent to Rs.330 crore, from Rs.623 crore in the same period.
Written by – Siddesh S Raskar
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