Home / Companies / News /  NHPC eyes 2,000 cr revenue in FY23 under monetization pipeline
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NEW DELHI : State-run NHPC Ltd aims to securitize 2,000 crore revenue in the current fiscal, said its chairman and managing director, Abhay Kumar Singh.

This is part of the securitization model the company has adopted in line with the Centre’s national monetisation pipeline (NMP). India’s largest power generation firm has appointed SBI Capital Markets Ltd for this exercise.

NHPC is evaluating several of its projects such as Salal (690 MW) and Dulhasti (390 MW). The plan is to securitize the revenue of hydropower projects for the next 10 years rather then selling them as the former option will help NHPC retain ownership of its assets. Last year, the public sector undertaking (PSU) received around 1,100 crore through the asset-backed securitization of the Chamera 1 hydropower project (540 MW).

This assumes significance as the power sector comprises 14% of the total assets on offer under NMP. This includes power generation assets totaling 6 gigawatt (GW) of hydropower and renewable energy assets accounting for 39,832 crore. Also, power transmission assets total 28,608 circuit km for monetization, accounting for as much as 45,200 crore.

“We will securitize our revenue. We are not selling any of our assets. We will securitize and take the 2,000 crore. We can put this money in solar and other projects, which are being implemented," said Singh.

Mint earlier reported about NHPC Ltd expecting the 1GW of solar power capacity that it was recently awarded to be commissioned by November next year. NHPC already has an operational 50 MW solar capacity. It is also adding 65 MW through a joint venture, while an additional 900 MW solar capacity is awaiting clearances. The PSU has an installed power generation capacity of 7.071 GW, with another 7.539 GW capacity under construction and projects totalling 7.652 GW under various stages of clearance.

State-run power sector companies have firmed up a mix of models to realize maximum value. These include creating a holding company and then divesting stake in the holding company, cashflow monetization, and setting up infrastructure investment trusts (InvITs). InvITs are trusts that manage income-generating infrastructure assets, typically offering investors a regular yield and a liquid method of investing in infrastructure projects.

“Under this we are taking Salal and one more project. We are finalising the list. We are taking those projects where financing has been done. It is a very good proposition. There are several projects, any of these may be brought under the plan. The consultant for this is SBI Capital Markets Ltd," Singh said.

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