State-run power producer NHPC is hoping to tap lending institutions based abroad in order to raise funds for its hydel power capacity expansion projects, in an effort to beef up its hydel power production capacity by nearly a third to ten gigawatt by 2022. NHPC’s current generation capacity stands at around 7.1 GW, and the company is looking to shell out a capital expenditure of up to Rs 3,800 crore for the financial year ending March 2020. The company has spent a capex of around Rs 2,000 crore in the previous financial year ended March 2019.
“The government has recognised large hydropower as renewable energy which might help us access cheaper funding from multilateral lending institutions,” said Balraj Joshi, chairman and managing director at NHPC. Currently, the state-owned hydropower developer is in initial discussions with AFD (Agence Française de Développement) and KfW in order to lend around Rs 2,800 crore for its Teesta-IV project for a tenure of 18 years.
“They have also shown interest. We have requested World Bank and Japan International Cooperation Agency too for the same project and are trying to tap Canadian Pensions Funds and Australian fund,” said Joshi, adding that the company would fix the deal as and when it gets the best deal.
NHPC is also eyeing renewable energy investors from across the world. “We will be conducting a roadshow soon in Singapore where we will float these requirements. Besides Teesta-VI and Teesta-IV, we also need funding for the Ratle project which is in Jammu and Kashmir,” he said. Meanwhile, NHPC is looking at taking over some of the country’s stressed hydel power projects to expand its generation capacity.
For instance, it says it is interested in bidding for Athena Energy’s Demwe project in Arunachal Pradesh. “After successfully winning the bid for Lanco Teesta-VI, we are eyeing the 1,750-MW capacity Demwe hydro project as the tariff is cheaper and the cost of the project is also lesser,” said Joshi.