The public sector hydroelectric power generation company, National Hydroelectric Power Corporation Ltd (NHPC), has laid out ambitious plans to increase its kitty by adding more capacities from the currently available total 1.5 lakh mw of potential resources in the country.
The company has proposed an initial public offer (IPO) to raise about Rs 6,000 crore to fund its currently under construction hydro-electric power plants in various parts of the country. The proposed public issue is of 1.68 crore equity shares of Rs10 each with a price band between Rs 30 and Rs 36 per equity share. The issue, which would constitute 13.64% of the power-issue capital of NHPC will open on August 7 and close on August 12.
The company, which has 13 power hydroelectric power stations with total power generation capacity of 5,175 mw is presently engaged in the construction of 11 additional hydroelectric projects adding about 4,622 mw of power generation capacity in the span of next three years. The company is also looking ahead for Centre?s nod for five more projects with a proposed capacity of 4,565 mw, while certain joint venture projects with an estimated capacity of 2,166 mw would also come up in coming years.
JK Sharma, director (projects) informed that of the total raised equity, 10% would be fresh equity, while 5% will be the disinvestments by the government. ??Out of the total Rs 6,000 crore raised through the public issue, Rs 4,000 crore will be used to finance our ongoing projects, while Rs 2,000 crore will be given to the Centre,?? told Sharma adding that the company targeted for a total installed capacity of 10,000 mw by the year 2013.
Sharma mentioned that hydropower constituted nearly, 25% of the total power generation in India. According to him, ??India has about 1.5 lakh mw of potential for hydro power generation, however, the sector alone cannot cater to the country?s requirements but a considerable share from the hydroelectric segment would be benefit from the environment point of view,?? he said.
Speaking to FE about company?s cost effectiveness, Sharma told the company?s operations were primarily dependent of the terrain and resources available. ??The initial cost attached to the project is very huge, however, on later part, the running cost becomes negligible, which brings down the selling price considerably?? told Sharma. He informed the company sells nearly 12% of the power to the state at free of cost, while rest of the power could be sold to state utility of any state. Currently, the company sells to eight states.
NHPC?s power stations and hydroelectric projects are located predominantly in the North and North East of India, in the states like J&K, Himachal Pradesh, Uttarakhand, Manipur, Sikkim, Arunachal Pradesh and West Bengal. The official informed that the company was also diversifying into non-hydro power projects and MP government had mandated the company to set up a 1,000 mw thermal power plant at Khandwa.