In what could be a major push for development of clean energy hydro power projects in India, the government is studying a proposal to merge all central hydro power companies and create a mega entity with a net worth of Rs 47,000 crore and projects over 44,000 mega watts (MW).
HT is in possession of a report by SBI Caps on the proposed consolidation of four central hydro power companies — National Hydroelectric Power Corp (NHPC), Satluj Jal Vidyut Nigam (SJVN), North Eastern Electric Power Corp Ltd (NEEPCO) and Tehri Hydro Development Corp (THDC) — into one. According to the report, the merger would result in the creation of a mega hydro power entity with a market value of Rs 51,734 crore and an 81% government stake overall.
The Centre has appointed NHPC, the largest of all hydro PSUs, to evaluate the prospects of creating the company on the lines of National Thermal Power Corp, India’s single-largest thermal power company with a net worth of Rs 87,000 crore and a generating capacity of over 43,000 MW.
“The merger would create a mega entity with significant balance sheet strength and net worth of Rs 47,000 crore,” the report said.