Chairman & Managing Director of National Hydroelectric Power Corporation (NHPC), KM Singh have a chat with the Pioneer team. An excerpt from his interview.
Q. What are the major achievements of NHPC so farIJ
A: NHPC is the largest Hydropower utility in India in Central Sector and is operating 20 power stations with a total installed capacity of 6587 mw, including 1520 mw by its subsidiary NHDC. NHPC contributes about 15 per cent of total hydropower installed capacity in India. It became ‘Mini Ratna’ Category-I Company w.e.f. April 2008 and a listed Company on BSE & NSE w.e.f. 1st Sept, 2009 after successfully concluding its IPO worth over Rs6,000 crore. We have not taken equity support from Govt since 2007-08. Average annual profit of the company in last 5 years is more than Rs2,000 crore and average annual Capex of the company is Rs3,100 crore. NHPC has excellent operating margin of more than 70 per cent.
NHPC has completed several hydropower projects ahead of schedule including Chamera-Il (300 mw) in Himachal Pradesh in record time of 4 years 6 months - a trend setter project in hydropower development. World’s longest inclined pressure shafts (1546m) using double shield Tunnel Boring Machine (TBM) has been completed by NHPC at its Parbati-II Project in Himachal Pradesh. NHPC has the credit of constructing Concrete Faced Rock filled Dam (CFRD) for the first time in India at its Dhauliganga Project in Uttarakhand and also introducing Jet Grouting for the first time in India at its Teesta-V Project in Sikkim. A remarkable progress of 816m of tunnel excavation from single face has been achieved in a month at Kishanganga H.E. Project J&K, which is highest-ever in India using TBM. It has also established a ‘Real Time Seismic Data Centre’ for receiving the earthquake data on real time basis from its 18 power stations. NHPC is the only hydropower utility in the country to have such data centre. It has developed in-house capability of A to Z in development of Hydropower energy field.
Q. What is the expansion planIJ
A. NHPC is now a 5000 mw company on standalone basis. NHPC at present is executing 4 hydropower projects. The total installed capacity of under construction projects is 3210 mw and 6995 mw capacity projects are under various stages of clearances. A wind power project of 50 mw in Jaisalmer, Rajasthan is nearing completion. It has already added 1292 mw of Hydropower capacity in XIIth Plan and by the end of the current plan, it is expecting to add another 410 mw (40 mw each) of installed capacity by commissioning balance 2 units of TlDP-IV along with Kishanganga Project (330 mw) in J&K. Further, 100 mw each is expected to be added from Wind and Solar Power Projects. NHPC aims to commission these projects as early as possible and become a 100,00 mw company
Q. What have been most significant achievements of NHPC in financial year 2015-16IJ
A. The current financial year has been very significant for NHPC on various fronts viz. capacity addition, Joint Ventures & MoUs, Financial performance etc. During 2015-16, NHPC added 80 mw from 2 units out of total 4 units of Teesta low Dam Stage-IV (160 MW). On operational parameters, it has overall outperformed in both the benchmarks viz. generation of power and PAF. During the FY 2015-16, it has achieved highest ever generation of 23683 MU since its inception. It has also achieved 81.6 per cent actual Plant Availability Factor (PAF) against ‘Excellent’ MoU PAF target of 76.8 per cent.
On financial front, NHPC has reported a 15 per cent growth in the standalone net profit at Rs 2440 crore in the FY 2015-16 compared to Rs 2124 crore for the corresponding period in the last fiscal year. Sales for the FY 2015-16 also rose by 9 per cent to Rs 7347 crore compared to Rs 6737 crore for the corresponding period in the last fiscal year. A final dividend of Rs 1.50 per equity share for the year 2015-16 has been recommended which comes out to Rs 1660.60 crore against total dividend of Rs 664.25 crore for the year 2014-15. It has already paid an interim dividend of Rs 875.49 crore to Govt for the FY2015-16. We have also signed a MoU with Govt of Bengal and WB State Electricity Distribution Company limited for development of four hydro projects with total capacity of 293 mw by NHPC on Build, Own, Operate and Maintain (BOOM) basis. MoU has also been signed with Solar Energy Corporation of India for development of 250 mw Grid connected Solar Power Projects.It has further signed pact with Teesta Urja limited for providing consultancy services for Project Construction Management for 1200 mw Teesta-III Project. NHPC alongwith JKSPDC and PTC has formed a JV Company, CVPPP ltd., for implementation of Pakal Dul, Kiru & Kwar Projects in Chenab River Basin with total installed capacity of 2164 mw.
Q. What are your key goals and priorities for futureIJ
A. NHPC's core business is Generation of hydropower and sale of electrical power. The Company is committed to maintain its leading position in this field. It is presently engaged in development of several hydroelectric projects. It is focused on expeditious development of vast untapped hydro potential available in the country. In addition to the projects under construction, Pakal Dul HE project (1000 mw) stands cleared by Govet for implementation under JV. NHPC is actively pursuing clearances from Govt for hydropower projects having aggregate capacity of 6995 mw. Out of this, 5 projects with capacity of 4995 mw are planned to be implemented by NHPC by its own and four projects with capacity of 2000 mw through Joint Ventures.
NHPC is also helping to the stalled projects in hand of private agencies by providing consultancy for Project Construction Management and O&M services. It is also envisaging 4 renewable energy projects on ownership basis - viz., 2 nos. Wind power projects (130 MW) & 2 nos. solar power projects (100 MW) which are presently under clearance stage. 1 no. Solar power project (50 MW) in Kalpi, UP and 1 Thermal Power Project in Pirpainti, Bihar are also under consideration in JV mode. It aims to reduce its operating cost and improve operating performance by investing in technologically advanced equipment and methods and by allocating significant resources to modernize the Power Stations. NHPC is pursuing CDM registration for additional projects and exploring other carbon trading initiatives such as voluntary emission reduction certification.
Q. What steps are you taking to ensure to meet these targetsIJ
A. NHPC has established a Multi-Tier progress monitoring and review system coordinated by the Project Monitoring Services Group. It has also introduced Primavera based monitoring system and earned value Techniques of project management. Detailed and extensive reviews are carried out regularly at the Project level which is also periodically reviewed by the concerned Regional offices. Co-ordination meetings with the participation of Regional and Departmental heads at Corporate Office are held to deliberate on critical issues with a view to expedite the project implementation. NHPC has also implemented specialized Enterprise Resource Planning (ERP) system to efficiently manage the optimum utilization of generating assets and expeditious implementation of construction projects.
Q.With the emergence of competition, how do you think it will affect NHPCIJ
A. As I have already said 65 per cent of the total hydropower potential of the country still remains to be tapped. NHPC is a premier organisation in the country in the field of hydropower development and looks to maintain its leadership in the hydropower sector. We are working on capacity addition plan through our own projects as well as through Joint Venture projects. A JV company ‘Chenab Valley Power Projects (P) limited has been formed with Jammu & Kashmir State Power Development Corporation ltd. (JKSPDC) and PTC India limited for three projects in Jammu & Kashmir with an aggregate capacity of 2164 mw. Another JV company ‘loktak downstream Hydroelectric Corporation limited’ with Govt. of Manipur has been incorporated for development of 66 mw loktak Downstream project in Manipur. A JV company is proposed in Bhutan for development of Chamkharchhu-I Project (770 mw) in Bhutan. In addition to these, talks are also going on with Government of Sikkim for few more projects.
Q. What is the outlook for the hydropower sectorIJ
A. Our country is endowed with enormous economically exploitable and viable hydropower potential of 1,48,701 mw (above 25 mw) out of which 42,783 mw (excluding Pumped Storage Schemes) has been developed so far and projects totaling 13,502 mw (excluding PSS) are under development. Thus, about 65 per cent of the total potential remains to be exploited. The remaining untapped potential provides ample opportunities to hydropower developers.
At present, emphasis is on using sustainable, renewable resources of power generation to meet the increasing demand for energy. Hydropower is the best & dependable renewable energy technology which is presently commercially viable on a large scale. Hydropower is clean power and having very less generation of greenhouse gases compared to other conventional modes of power generation. It also enhances energy security of the country where there is deficit of energy and shortage to meet peak demand. Hydropower Projects reduce depletion of indigenous fossil fuel and import of coal, crude oil required for energy generation through thermal power plants and DG sets respectively and thus would save huge amount of scarce foreign currency and avoid emission of greenhouse gases. These gases are responsible for climate change which is subject of concern worldwide. To avoid or minimize adverse impact on environment by avoiding greenhouse gasses, and for the Energy Security of the Nation, hydropower is the best alternative for generation of green and clean electricity in a sustainable manner. In addition, water security, flood control and irrigation are also feasible with Hydro Power Scheme. Therefore, I see very bright future for hydropower sector in India.