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NHPC to enter thermal power generation

business Updated: Apr 20, 2009 22:55 IST
Anupama Airy
Anupama Airy
Hindustan Times
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The country’s largest hydel power company, NHPC Ltd, is all set to diversify into thermal power generation.

A 1,000 mega watt coal-based power plant will be set up by NHPC’s subsidiary Narmada Hydro-electric Development Corporation (NHDC) in Madhya Pradesh.

NHPC holds a 51 per cent equity in NHDC, while the rest is being held by the Madhya Pradesh government.

Speaking to Hindustan Times, the chairman and managing director, NHPC, SK Garg, clarified that this was not a direct diversification by NHPC. Under its articles of association, NHPC does not have the mandate to get into thermal power generation.

“The diversification into thermal power is through our subsidiary NHDC which has been allotted a 1,000 mw power project by the government of Madhya Pradesh,” Garg said.

NHDC has already implemented 1,520 mw of hydro power projects in Madhya Pradesh. As there is not much of a scope for further hydel projects in the state, the state decided to allot NHDC a coal-based power project in the state, he said.

Garg said that NHPC would continue to consolidate its position in implementing hydel power projects, which holds immense potential.

“NHPC had approached the government to amend its articles of association so that it can set up thermal power projects. But we were told to concentrate on hydel,” he added.