NHPC Plans to Raise Rs 2,300 Cr for exceeding Initial Target

In a bid to support its expansion and achieve the Union government’s monetization target, state-owned hydropower company NHPC is poised to raise approximately Rs 2,300 crore this fiscal year, surpassing its initial goal of Rs 2,000 crore.

NHPC plans to raise the funds by securitizing the return on equity of its Dulhasti Power Station in Jammu and Kashmir for eight years, while retaining ownership of the project, as per a Mint report. The power sector accounts for 7% of the total value of the assets under the Union government’s national monetization pipeline, making this move significant for NHPC’s expansion plans.

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The company has invited bids from banks and NBFCs (non-banking financial companies) for its securitization plan. The financial institution offering the lowest discounting rate or the highest amount for securitization will be selected, and the Dulhasti Power Station project will be pledged with it.

According to sources, the company will retain “full control and ownership of the project” and the securitization will be completed in October or November, the report added. The funds raised will be used for capital expenditure, effectively serving as a loan for the company.

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 In FY24, it raised Rs. 2,046.94 crore by monetizing the return on equity of its Kishanganga Power Station for eight years.

NHPC’s decision to raise funds through securitization comes on the heels of several significant developments. This was followed by NHPC renewing a memorandum of understanding with the Department of Water Resources to set up several pumped storage projects in Maharashtra.

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