NHPC, a state-owned hydropower business, intends to combine with THDC India Ltd and North Eastern Electric Power Corp. Ltd (Neepco), two additional public-sector hydropower enterprises. The combined company is estimated to have a market valuation of around 70,000 crore.
The idea to establish a mega hydropower firm comes at a time when the government is trying to increase hydropower’s proportion of the country’s energy mix. Hydropower now accounts for 11.2% of total installed power capacity in the nation, with 46.85 GW installed.
The Centre also intends to increase the number of pumped hydropower storage projects. The electricity ministry issued rules for pumped storage projects this month, stating that it will assist them through concessional climate funding and environmental approvals.
Last year, the government issued renewable purchase obligation norms to be followed till FY2029-30, which mandated the use of hydropower by distribution companies. According to rating agency ICRA, India would have to add 18 GW of hydropower by 2030 to meet its hydropower purchase obligation.
Reference- Economic Times, Business Standard, Mercom India, Construction World