State-owned hydropower giant NHPC is gearing up to list its renewable energy arm, NHPC Renewable Energy, within the next two years, says CMD RK Chaudhary.

The company currently operates 261.7 megawatt (MW) of renewable projects, including five solar and one wind project, with an additional 1,490 MW of solar capacity under construction. NHPC is also developing a 1,200 MW solar park and a 145 MW solar project in Uttar Pradesh as part of its expansion into clean energy.

On February 7, the company reported a 52.5% year-on-year (YoY) decline in net profit at ₹231 crore for the October-December 2024 quarter.

The company, which has a current market capitalisation of ₹74,112.27 crore, has seen its shares lose more than 23% over the last year.

These are the edited excerpts of the interview.

Q: For a lot of these new projects, have you already signed the power purchase agreements (PPAs) and what are the tariffs that are being discussed? Are they higher than your blended tariffs right now?

A: For all the upcoming projects which are going to be commissioned, the PPA long term is for 40 years. the tariff is as per the Central Electricity Regulatory Commission (CERC) guidelines. So whatever is the completion cost of the project, based on that, the tariff will be determined, and it will be around ₹4-5 per unit, so based on the completion cost of the project.

So there are a lot of upcoming projects – Kamala Hydroelectric Project (HEP) project of 1,720 MW, Subansiri Upper HEP of 1,605 MW- these projects construction activities are going to start. The Uri-I Stage-II 240 MW, Dulhasti Power Station State-II 260 MW and Kirthai HEP – II 930 MW. These are the projects in the pipeline. So the construction activities are going to start very soon. We are going to publish the bid for the works of these projects very soon.

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Q: What is the update on the green arm listing? When do we see that happen? What is the current capacity and what is the commissioning pipeline as well?

A: The renewable projects – we have 261.7 MW so far out of the six projects, five solar and one wind power. Wind power is 50 MW, and solar is 211.7 MW. Apart from that, we have a few construction projects, 1,490 MW under construction solar projects. And beyond that, we are working on a 1,200 MW solar park in Uttar Pradesh. We are also working on 145 megawatt solar projects in Uttar Pradesh. So these are there. So NHPC Renewable Energy Limited, we are going to list it in another two years.

For the full interview, watch the accompanying video

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