India's NHPC to Add 4,500 Megawatts in Hydropower Capacity by 2013

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Researched by Industrial Info Resources (Sugar Land, Texas)--NHPC Limited (BSE:533098) (New Delhi), which is India's largest hydroelectric power producer, will add 4,500 megawatts of installed hydro electricity generation capacity by completing 10 projects by 2013, to become a 9,500-MW power producer.

According to S.K. Garg, the chairman and managing director of NHPC Limited, the company will invest $5.8 billion between 2012 and 2017, coinciding with India's 12th Five Year Plan Period, in new hydro electricity projects that will generate an additional 1,895 MW. This will be in addition to projects with an aggregate capacity of 2,050 MW that will spill over from the current 11th Five-Year Plan Period of 2007-12.

NHPC, through its wholly owned subsidiary NHDC Limited, is foraying into thermal power generation. NHDC has bagged the 1,320-MW Khandwa thermal power project in the central Indian state of Madhya Pradesh. It also has been offered the 1,320-MW Shahapur thermal power project, which is also in Madhya Pradesh. The total investment in these two projects is estimated to be about $2.3 billion.

NHPC has sought government clearance for seven new hydro projects, which have a total capacity of 9,651 MW. Of this, projects with an aggregate generating capacity of 5,965 MW will be implemented by NHPC on its own, while the balance will be implemented through joint ventures.

NHPC is collaborating with SJVN Limited (BSE:533206) (Shimla) and the state government of Manipur for the 1,500-MW hydro electric project and 66-MW Loktak project in the northeastern state of Manipur. The Indian ministry of power also has sanctioned NHPC's proposal for the 2,100-MW hydro electric Pakal Dul project, on the river Chenab, in the state of Jammu and Kashmir, which will be implemented in collaboration with Jammu and Kashmir State Power Development Corporation and Power Trading Corporation.

According to India's Planning Commission, the total hydro electricity generation potential is estimated at 63,000 MW, but the hydro electricity installed capacity at present is just 24% of the total power production capacity of 164,508 MW. To promote investments in hydro electricity generation, the Indian government has allowed full private-sector investments in hydro power projects, but actual capacity creation by the private sector continues to be very low, with NHPC continuing to be the single largest investor. Of the total 15,600 MW of hydro electricity capacity creation sanctioned by the Indian government for 2007-12, 3,500 MW was allotted to private investors. While government companies, led by NHPC, added 3,600 MW during this period, no capacity has been successfully added by private investors.

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