State-owned hydropower company NHPC is planning to merge with two other public sector hydro companies, THDC India Ltd and North Eastern Electric Power Corp. Ltd (Neepco). The merged entity is expected to have a market capitalization of around ₹70,000 crore.
The proposal to form a mega hydropower company comes at a time when the government is looking at increasing the share of hydropower in the country's energy mix. Currently, with 46.85 GW of installed capacity, hydropower forms 11.2% of the total installed power capacity in the country.
The Centre also plans to boost pumped hydropower storage projects. Last month, the power ministry came up with the guidelines for pumped storage projects and said that it would support them through concessional climate finance and rationalized environment clearances.
Last year, the government issued renewable purchase obligation norms to be followed till FY2029-30, which mandated the use of hydropower by distribution companies. According to rating agency ICRA, India would have to add 18 GW of hydropower by 2030 to meet its hydropower purchase obligation.
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