NEW DELHI, July 1: Against the backdrop of local issues and other hurdles delaying many hydel projects, state-run NHPC has said the hydro sector was not getting the “due support” from various quarters.
In a reflection of woes faced by the sector, NHPC’s investments worth Rs 7,800 crore are stuck on account of delays in two of its upcoming projects — 2,000 MW Subansiri Lower in Assam and 240 MW Uri II in J&K.
“It (the hydro sector) is also not getting the due support (from various quarters). There are various hurdles related to clearances, delay in project implementations and funding.
“The sector needs to get the push and the will is required for the same,” NHPC Chairman and Managing Director A B L Srivastava told PTI.
Going by estimates, hydro power accounts for little over 20 per cent of the country’s total installed capacity of over 2,00,000 MW.
According to him, investments to the tune of Rs 7,800 crore are stuck due to delay in Suban Shree Lower and Uri II projects and the impasse is financially hurting the company.
“They are getting delayed mainly on account of local issues (such as agitation). These investments have 70 per cent debt portion and the remaining are equity contribution. There are no returns on equity and that is hurting the company’s bottom line,” Srivastava noted.
Further, he pointed out that if the delay continues for a longer time, it would affect the company’s balance sheet.
The execution of other projects including Teesta Low Dam III (130 MW) and IV (160 MW) in Sikkim and Chamera-III (231 MW) in Himachal Pradesh are also getting delayed.
“Our share prices are down. This is mainly because we have been unable to add capacity within the stipulated timeline,” Srivastava said.
In recent weeks, shares of NHPC have been trading in the range of Rs 17-19 on the BSE. The scrip touched a 52-week low of Rs 17.45 on May 18 this year. It had reached a 52-week high of Rs 25.85 on August 4, 2011.
Currently, NHPC has installed capacity of over 5,100 MW and plans to commission 1,200 MW capacity this fiscal. Over 21,000 MW capacity of the company is under various stages of implementation, according to its website.
In the 12th Five-Year Plan (2012-17) period, hydro power capacity addition is expected to cross 13,400 MW, with private sector to make up for around 3,640 MW. (PTI)
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