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Informist, Monday, May 18, 2026

 

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--NHPC: Exploring pumped storage projects in multiple states 
--CONTEXT: Comments by NHPC's managment in post-earnings analyst concall 
--NHPC: Other expenses up sharply Q4 on rise in provisions, insurance costs 
--NHPC: Under-maintenance Parbati-3 unit likely to resume operation soon 
--NHPC: See top line activity from Teesta 5 unit June onwards 
--NHPC: Not done tendering in renewable projects in recent past 
--NHPC: Costs escalation very inherent in hydro projects 

 

By Ashutosh Pati and Rajesh Gajra

 

MUMBAI – NHPC Ltd. expects the next hearing of its petition with the Central Electricity Regulatory Commission for determination of tariffs for its Parbati-II hydroelectric project in Kullu, Himachal Pradesh, on May 25 to be the final one. The company's management told analysts on a post-earnings conference call Monday that it expects the final tariff order to emerge from the May 25 hearing.

 

The management hopes the final order will be issued by the end of the June quarter, a top official of the company said. In February, the Central Electricity Regulatory Commission had passed an order granting NHPC an interim tariff of 75% of the annual fixed charges. For the company's Subansiri hydroelectric project in the Northeast, NHPC had filed a tariff petition with the commission earlier and expects it to issue an order on the interim tariff in about six months, the management said.

 

 

The Parbati-II unit reported a profit of INR 1.04 billion for the March quarter but a loss of INR 1.50 billion for the financial year ended March, the management said. At the end of the financial year, NHPC computes the shortfall of energy it is supposed to recover, it said. At Parbati-II, the company had a recovery shortfall of INR 2 billion which it booked under revenue in the March quarter, the management said. "That is the reason Parbati-II has given the profit of 104 crore (INR 1.04 billion) in Q4," the official said.

 

To a question on the reasons for the shutdown in the company's Parbati-III hydroelectric project for some time, the management said this was for maintenance and expects the unit to be operational "very soon". It said it is exploring the development of pumped storage projects in several states across the country, such as Maharashtra, Odisha, Madhya Pradesh, Gujarat, Chhattisgarh, Rajasthan, and Andhra Pradesh.

Asked if the company expects cost escalations in its future projects, the management said such increases in expenses are "very inherent" in any hydroelectric power project. The costs for a project when awarded are for the price levels at the time of the award, but going forward for 4-6 years, "you have to pay the price variation", the official said. NHPC is targeting five new hydroelectric projects in FY27, as per the management.

 

The company expects "some" revenue from its Teesta-V power station in Sikkim to start coming in from June, as soon as operations resume. So far, "only expenditure has been there in Teesta-V", a top official said. A landslide had occurred at the unit during FY25, damaging key parts.

 

The company has not done any tendering on renewable energy projects in the recent past, the management said. This follows the government's cancellation of projects at the end of 2025 awarded by renewable energy implementing agencies, with NHPC being one of them, where the power sale agreements had not been signed. "We will... have more clarity in days ... or months to come in respect of REIA (renewable energy implementing agency) projects," a top official said.

 

The company reported a net profit of INR 13.28 billion for the March quarter, up almost 49% on year. Its revenue rose over 33% to INR 27.41 billion. The management said on the call that the 84% year-on-year jump in other expenses to INR 10.31 billion in the March quarter was mainly due to a rise in provisions and insurance costs.

 

Monday, shares of NHPC closed at INR 77.71 on the National Stock Exchange, up 1.2% from Friday.  End

 

Edited by Rajeev Pai

 

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