National Hydroelectric Power Corporation Ltd is the key public sector undertaking in power generation. With several projects in hydroelectric being planned during the Tenth Plan, NHPC is expected to play a major role. NHPC chairman and managing director
Yogendra Prasad tells Deepak Joshi about the company's broad strategy and vision.
Q. Mismatch in thermal-hydroelectric ratios has created distortions that impact the grid. What steps are you taking to restore balance?
A. The Government plans to have additional hydroelectricity generation of 5310 MW in the Tenth Plan.
This is a difficult, but achievable goal. NHPC will be undertaking several projects. As a policy, we have decided to pursue projects that are sanctioned within six months of approvals being sought. This will help completing projects on schedule.
Q. Will the 60:40 ratio in thermal and hydroelectric power finally be achieved?
A. This will help in further distorting the power mix and improve the ratio. The Government has assured us that the clearances will be expedited.
Q. What are the means for financing 5310 MW power generation?
A. The projects will have a debt-equity ratio of 70:30. The Government will largely provide the equity portion, while nearly Rs. 2000 crore will be through internal accruals.
NHPC has also obtained a Rs. 2,500 crore credit from the Life Insurance Corporation of India and this can be extended to Rs 10,000 crore, if need be. As a result, there will be no shortage of funds for hydroelectric power projects.
Q. How will you address the problem of excess staff?
A. NHPC has undertaken six projects in Arunachal Pradesh. Several other power projects are being planned in other states. Employees are accordingly being deployed in various projects. There is no surplus staff in NHPC now. We are not planning any staff
reduction.
Q. Hydroelectric power projects are often delayed due to lack of cooperation from states. How will you overcome this problem?
A. We have formed joint ventures with the state government in the Narmada Hydroelectric and Nathpa Jhakri projects. NHPC is holding direct negotiations with contractors. We are confident of completing the Nathpa Jhakri project by 2003 against the earlier
estimate of 2006-07. Similar strategy will be adopted in other projects.
Q. Are you considering joint ventures for projects in Nepal and Bhutan?
A. We are currently undertaking projects in Nepal and Bhutan on turnkey basis. There is no plan to enter into joint ventures in the two countries. However, if the Government asks us to form joint ventures in Nepal and Bhutan we will act accordingly.
Q. Is NHPC considering setting up mini-hydropower projects?
A. We are working on 6 MW and 4 MW projects in Arunachal Pradesh. NHPC is exploring the possibility of establishing another project in Arunachal also.
Q. What is the status of the NTPC-NHPC merger?
A. The situation has changed completely in the last few months. We have many projects in hand. Therefore, the Government has dropped the merger proposal.
