NHPC powers capex outlay, but investors remain on the sidelines

Shares of NHPC Ltd were little changed over the last one year, even as the company resumed work on the long-stalled 2,000 megawatts (MW) Subansiri Lower hydroelectric project. Alongside, it took over the 500MW Teesta VI hydropower plant and is aiming to add 800MW Parbati II power project in FY22.

Together, the Subansiri Lower and Parbati II projects can expand the regulated equity base by 68%, show NHPC’s calculations. Regulated equity assures minimum return.

Profits after the start of the Subansiri Lower project can rise by as much as ₹965 crore, estimates NHPC. That will be a notable jump for a company which earned a profit of ₹2,630 crore in FY19.