NHPC to raise Rs2,000 crore by March

NHPC to raise Rs2,000 crore by March

New Delhi: India’s state-run hydropower utility NHPC Ltd plans to raise Rs2,000 crore in debt by March as it looks to boost capacity, a top executive said on Wednesday.

The company will raise Rs500 crore in domestic bonds by September and the remainder by the end of the current financial year, chairman A.B.L. Srivastava told reporters.

NHPC, India’s largest hydropower generator, plans to add 723 megawatt by March to raise its capacity to 6000 mw.

The company has earmarked a capital expenditure of about Rs5,000 crore in 2011-12 compared with Rs3,800 crore last fiscal year, when it added 120 megawatt.

NHPC expects to surpass the FY12 output target to generate 18.5 billion kilowatt hour (bkwh) of power, on “good monsoon", Srivastava said.

The monsoon rains, which deliver 75-90% of India’s total rainfall and replenishes water reservoirs that helps hydropower generation, were 6% below normal between 1 June and 3 August, the government’s weather office had said last week.

India’s water reservoirs were at 49% of capacity on 4 August, higher than 35% a year ago, boosting prospects for hydropower generation that accounts for a quarter of country’s generation capacity.

Earlier in the day, NHPC posted a 47% rise in April-June profit to Rs791 crore on new capacity and good rains. Sales rose 40% to Rs1,431 crore.

“It (the rise in profit) was partly due to addition of one plant that was not operational last year and also due to good monsoon," said Srivastava.

On Wednesday, shares in NHPC, valued at about Rs30,000 crore, rose 4.13% to close at Rs25.20 in a Mumbai market that was up 1.74%.