The proposal lays out plans to add 700 mw in the Ninth Plan, 3000 mw in the Tenth Plan period and the balance to be added in the coming 10 years after the Tenth Plan. NHPC plans to raise resources for the extensive capacity addition from the international finance market and multilateral agencies.

NHPC's proposal is targeted to check the worsening ratio of hydro power in the total power basket. Presently hydro power stations are contributing only 24.76 per cent to the aggregate power basket, the ideal mix being 40 per cent. This imbalance in the mix is considered to be responsible for causing serious problems in the grid by way of voltage fluctuation. The energy shortage in the country is presently 5.9 percent, with shortage during peak hours being 13.9 per cent.

NHPC's proposal to the ministry has suggested that it should be allowed to form joint ventures with private sector companies for the mega power projects. The government recently assigned NHPC detailed preparation and investigation project reports for the proposed power plants at Dihang and Subansiri. NHPC is eyeing the north-east where the power potential is estimated at about 35,000 mw.

The government of Nagaland has entrusted NHPC with the preparation of a detailed project report for the 778 mw plant at Tizu-zungki (778 mw). NHPC is now in the process of creating an organisation structure at Guwahati to take up these new projects. Similarly, discussions regarding handing over four major projects in the Kaveri basin in the south are in an advanced stage with the government of Karnataka, Tamil Nadu and Kerala.

Recently NHPC has been entrusted with the development of the 2051 mw Parbati project in Himachal Pradesh. The government of Sikkim iskeen that the hydro power potential in the Teesta basin should be taken up by NHPC for development. On this basin NHPC has already taken up the 60 mw Rangit project in Sikkim which is nearing completion. Work on the 510 mw Teesta stage-V project has also been started. NHPC has also started work on the 90 mw Loktak downstream project in Manipur.

In order to achieve its mission to install 44,218 mw in the next 20 years, NHPC has made important strategic changes in its policy and corporate objectives. These include drastic control on time and cost over-runs, introduction of new methodologies to undertake consultancy assignments. It has planned to participate in ventures abroad, to diversify into non-conventional energy generation and to undertake long-term feasibility studies of river basins. Also on the agenda is modernisation of hydro power generating stations.