NHPC initiates ₹1,732 crore, 300 MW solar project in Rajasthan

NHPC, Indian public sector hydropower company headquartered in Faridabad has laid the foundation stone of a 300 megawatt grid-connected solar PV project in Rajasthan for nearly ₹1,700 crore worth of investment.

Speaking to CNBC-TV18, RP Goyal, Director-Finance, NHPC said, “We have already commissioned one solar project of 50 megawatt in Tamil Nadu and this will be the second solar project on our balance sheet. Its capacity is 300 megawatt and we have already signed PPA for all of the capacity. This project is part of our 1000-megawatt central public sector undertaking (CPSU) scheme projects. So, this project is likely to be commissioned by September 2024.”

NHPC has been awarded solar energy contracts from Andhra Pradesh, Rajasthan and Gujarat for a total of 1,000 MW.

Goyal said the long-term target for solar is not much because as the primary focus is on hydro power. The company will keep its capital expenditure (capex) split at 80:20 i.e., 80% for hydro and 20% for solar and wind projects. "We are working on a total 1,200 megawatt solar projects as of now, and our future plans are also in the same range,” he noted.

In an earlier interaction with CNBC-TV18, Goyal had talked about the plan to list its solar subsidiary separately in the next three years.

NHPC's revenue for the third quarter (Q3FY24) was at ₹2,055 crore, down 20% year-on-year (YoY) from ₹2,582 crore. EBITDA (earnings before interest, taxes, depreciation, and amortisation) was ₹721 crore versus ₹1,705.2 crore last year. Margins declined to 35% from 66%, while profit after tax was ₹491 crore compared to ₹672 crore, a decline of around 27%.

The company has a market capitalisation of ₹93,369 crore. Its stock has gained 147% over the past year.