NHPC’s IPO to hit market by mid-Aug

New Delhi: The long-delayed initial public offering (IPO) of National Hydroelectric Power Corporation (NHPC), the country’s biggest hydro power utility, is set to hit the market by mid-August.

Prior to the listing, which involves issuing new shares as well as divestment by the government, the company would be granted a mini-ratna status (which gives financial and operational autonomy), said Minister of State for Power Jairam Ramesh.

“The IPO is extremely crucial for NHPC’s success. It has been delayed by a year already but there would be no further delay,” said Ramesh, adding that three independent directors would soon be appointed to the board. The lack of independent directors on the board was the main reason for the delay.

Terming NHPC as a “sleeping giant”, he said that the government’s aim was to give the company a new lease of life. It would play a critical role in increasing the share of hydro power in the country’s overall power basket from the current 25 per cent to the targetted level of 40 per cent in the next 20 years.

He detailed a host of projects which the company would be taking up shortly. The power utility will soon be forming a 51:49 joint venture with the Jammu & Kashmir Power Development Corporation.

“The MoU for the joint venture will be signed next week,” said Ramesh. The venture would take up three run-of-the-rive (RoR) projects totalling a capacity of 2,120 mw.

Ramesh also said that the government would expedite the necessary approvals for the 330 mw Kishanganga project, which has seen a cost escalation from Rs 2,200 crore to Rs 3,700 crore due to “higher risk premium.” The project received Cabinet clearance in June last.

The country has huge hydroelectric power potential of 150,000 mw with realisation at a poor one-fifth. The northeast region has a potential of 63,000 mw, while Arunachal Pradesh alone has a potential of 50,000 mw.

“In Arunachal, only 424 mw has been realised and 2,600 mw is under development,” said Ramesh.