New Delhi: India’s largest hydel power company NHPC will double the power generation to become a 10,000 MW plus corporation by 2011-12 envisaging an investment of Rs28,000 crore.
“We currently have a capacity of 4,700 MW with work on 13 projects going on in full swing. We shall be commissioning all the projects without time and cost overruns. This is all being done with internal accruals, debt funding and public offering in the near future,” said S K Garg, CMD, NHPC.
Elaborating on the plans, Gard said government support was discontinued since last year and all projects (ongoing and in the future) would be funded largely from the internal accruals and debt financing.
On the status of India’s largest hydel power project of 2,000 MW (Subansiri lower) in Arunachal Pradesh, he said work on dam’s construction will start by December, while power house work was already on.
“As committed, we shall commission this project in 2011-12, while rest of the 12 projects in next three years,” he said adding two projects totalling 1030 MW have already been commissioned in the first year of 11th five year plan.
Asked details of Rs28,000 crore investment, Garg said, about Rs4,800 crore would come from internal accruals and the corporation has already signed an agreement with Power Finance Corporation for Rs3,000 crore in addition to Rs1,000 crore to be signed soon.
Besides, NHPC has two lines of credit from Life Insurance Corporation for Rs9,000 crore.
On the public offering, the CMD said, “we are waiting for appointment of independent directors and as soon as this is done we shall hit the market in no time as all preparations have been done.”
NHPC has a paid up capital of Rs11,500 crore and is planning to raise 10% as a fresh equity besides five per cent disinvestment of government’s stake.
The corporation had last year submitted the draft prospectus with market regulator SEBI in April but did not get the approval as it did not have 50% independent directors on the Board.
Asked how much was likely to be raised through an IPO, Garg declined to make any guess but said the recent issue of Rural Electrification Corporation (REC) has proved that investors have lot faith in the PSUs.