NHPC has planned capex of Rs 21,600 crore for 11th Plan

Written by Sanjay Jog | Updated: Nov 19 2009, 04:33am hrs
State-run NHPC, which recently concluded its IPO, is currently engaged in the implementation of a capex plan of Rs 21,600 crore in the 11th Plan for hydro generation capacity. It is also pursuing hydro projects in the neighbouring countries. In an interview with FEs Sanjay Jog, NHPC CMD SK Garg speaks at length on the companys capacity plans, the progress seen so far and the hurdles faced. Excerpts:

What is the targeted capacity addition for the 11th and 12th Plans and what will be the total capital expenditure

NHPC is currently engaged in developing several hydroelectric projects. It is also focusing on the vast untapped hydro-potential in the country. The company is executing 11 projects, with an aggregate capacity of 4,622 mw. It had set a target of commissioning 12 projects with an aggregate installed capacity of 5,322 mw during the 11th Plan. Of these, two projects with an aggregate installed capacity of 1,030 mw have already been commissioned in 2007-08 and one project is to be commissioned in 2009-10. Six projects with an aggregate capacity of 1212 mw are likely to start functioning in 2010-11, while a capacity of 910 mw, through two projects, is expected in 2011-12.

NHPC is also actively pursuing clearances from the Centre for projects with an aggregate capacity of 9,981 mw. Out of these, seven projects with aggregate capacity of 6,315 mw are to be implemented by NHPC on its own. As a part of its corporate plan, NHPC is keen to harness hydro potential in the states through joint ventures.

NHPC has incurred a capital expenditure of Rs 3,678 crore during 2008-09, which is 43% higher than Rs 2,568 crore in the previous year. The company has planned a capex of Rs 4,668 crore for the year 2009-10 and Rs 21,600 crore for the 11th Plan, to be met through internal resources, subordinate debt from the Centre, proceeds from IPO and borrowings.

What are the steps being taken to ensure that these targets are met

NHPC has established a multi-tier progress-monitoring and review system coordinated by the corporate project monitoring group. The company has also introduced a Primavera-based monitoring system and earned value techniques of project management. Detailed and extensive reviews are carried out regularly at the project level, which is also periodically reviewed by the concerned regional office. Coordination meetings with the participation of regional and departmental heads are held to deliberate on critical issues with a view to expedite project implementation. NHPC is also implementing a specialised enterprise resource planning system to efficiently manage assets. Besides, the company has conducted a business process re-engineering and restructuring exercise to realign the organisational structure.

What is the progress seen on the implementation of projects in neighbouring countries

NHPC plans to continue expanding its international operations and further exploit the hydropower potential available internationally by leveraging its existing relationships. The ministry of power has worked out an action plan for hydro power development of 10,000 mw in Bhutan by 2020. Under this plan, NHPC has been entrusted with preparation of DPRs of Chamkharchhu-I (670 mw) & Kuri-Gongri (1,800 mw) HE Projects in Bhutan. NHPC has also submitted a DPR to the government of Bhutan for the 720 mw-Mangdecchu Hydropower Project, two months ahead of schedule.

The company has also signed an MoU with the Union of Myanmar to study the master plan for the hydro power development of Chindwin River Basin and for reviewing the DPRs of the 1,200-mw Tamanthi Hydroelectric Project and the 642-mw Shwezaye Hydroelectric Project. NHPC has also been entrusted with the repair of civil works of the Varzob Hydro Power Plant-I (2x3.67 mw) in Tajikistan.

How is NHPC foraying into non-hydro power business

NHPCs core business is developing hydro potential available in the country and generating power. Thermal power projects are mandated for development through its subsidiary, NHDC, which has recently been entrusted with the setting up of a 1,320-mw thermal power project by the government of Madhya Pradesh. NHDC has also been allocated a site by the Madhya Pradesh government for a 100-mw wind power project in Kukru and the development of the 3.75-mw Durgaduani Mini Tidal Power Project in West Bengal, the first tidal power project to be executed in India. NHPC has also forayed into power trading by forming a JV with NTPC, TCS and PFC for developing and operating a power exchange at the national level. A JV company, National High Power Test Laboratory Pvt Ltd, has been incorporated between NHPC, NTPC, Power Grid & DVC for the online high power short circuit test facility in the country.

How is NHPC carrying out R&R policies What are the roadblocks

Liberal R&R Packages have been provided in all commissioned projects of NHPC. NHPC has recently come up with its own Resettlement and Rehabilitation Policy 2007. Although this policy is framed in line with the National Rehabilitation and Resettlement Policy (NRRP)-2007, NHPC has given certain additional benefits. NHPC will also earmark up to 0.75% of the estimated hard cost of the project for the Community and Social Development Plan (CSDP).

NHPC is facing a few hurdles in Arunachal Pradesh with respect to identifying project-affected families. This is because there are no land records with the revenue department. Since the tribal population in the state often depends upon shifting cultivation, there is no private land-holding data with the government.