The board of NHPC that met on August 10, 2022 has approved a proposal for monetization of future cash flows.
In a communication to stock exchanges, NHPC said that its board considered and approved the proposal for monetization of future cash flows (consisting of return on equity and incentives) of the Uri-I power station or any other power station(s) of the company for 10/15 years, in a single tranche during the ongoing fiscal year FY23.
In an earlier communication, dated August 5, 2022, NHPC had communicated to stock exchanges that the company’s board, which was scheduled to meet on August 10, 2022, would consider the aforementioned monetization proposal.
The monetization plan is part of the company’s capital expenditure financing plan for the year FY23. NHPC has planned capex of Rs.5,862 crore in FY23 against Rs.5,166 crore actually incurred in FY22.
Commissioned in April 1997, the Uri-I project in the UT of Jammu & Kashmir is a run-of-river scheme with installed capacity of 480 mw coming from four units of 120-mw each. The project was built at a capital cost of around Rs.3,500 crore and is designed to annually generate around 2,600 MU of electricity.
Performance in Q1 of FY23
NHPC generated 8010 million kwh of hydropower during the first quarter (April to June) of FY23. This does not include renewable energy generation (solar and wind) by NHPC or any form of generation from its subsidiaries or joint ventures. This generation was 11.1 per cent higher than the comparable 7193 million kwh in Q1 of FY22.
The country’s total power generation in Q1 of FY23 stood at 376 billion kwh. Of this, around 10 per cent came from hydropower and NHPC (standalone) accounted for 21 per cent of this hydropower generation.
The country’s total installed hydropower capacity is currently around 46,850 mw, representing approximately 12 per cent of the country’s total power generation capacity.
Also read: NHPC Incorporates Wholly-Owned Subsidiary For Renewable Energy
Generation Capacity
As of June 30, 2022, NHPC had 7,071 mw of operational power generation capacity – across hydropower and other forms of renewable energy. This also includes figures for its subsidiary NHDC Ltd. Capacity under construction (NHPC, subsidiaries and JVs) stood at 7539 mw, while 6,992 mw worth of projects were awaiting clearance. Another 890 mw was under the survey and investigation (S&I) stage.
Featured photograph (source: NHPC) shows underground powerhouse of the company’s 4×120-mw Uri-1 hydropower project in UT of J&K.
