NHPC net profit jumps 40 % to Rs.966 crore

Increased tariff and withdrawal of cess by Jammu and Kashmir Government help

October 28, 2011 06:09 pm | Updated October 29, 2011 01:06 am IST - NEW DELHI:

A. B. L. Srivastava, NHPC Chairman and Managing Director, addressing a press conference in New Delhi on Friday. Photo: Kamal Narang

A. B. L. Srivastava, NHPC Chairman and Managing Director, addressing a press conference in New Delhi on Friday. Photo: Kamal Narang

Riding on the back of increased tariff and withdrawal of the cess by the Jammu and Kashmir Government, state-run NHPC on Friday announced a 40 per cent jump in net profit at Rs.966 crore for the quarter ended September 30, 2011, against Rs.690 crore in the corresponding quarter in the previous year.

“We had approached the Central Electricity Regulatory Commission (CERC) for increasing the tariff. Our petition has been finalised and the interest component has added to the profit. The Jammu & Kashmir Government has withdrawn the cess it used to levy on hydro power projects. This has added Rs.453 crore to our profit in the last six months,” NHPC Chairman and Managing Director A. B. L. Srivastava told reporters here.

The net profit in the half-year ended September 30, 2011, was higher by 43.17 per cent at Rs.1,757 crore against Rs.1,228 crore in the year-ago period. Sales rose by 42.49 per cent to Rs.3,329 crore from Rs.2,336 crore in the period under review.

Mr. Srivastava said NHPC was actively pursuing development of hydro power potential in various States through the joint venture mode. It had floated a joint venture company, Loktak Downstream Hydroelectric Corporation Limited, for executing the 66 MW Loktak downstream project in Manipur. Another joint venture, Chenab Valley Power Projects Pvt Limited, has also been incorporated in association with the Jammu and Kashmir Power Development Corporation (JKPDC) and PTC in J&K for executing three projects totalling 2,120 MW on the Chenab river basin.

In addition, he said promoter's agreement had been signed with SJVN and Manipur Government for setting up a joint venture for implementing 1,500 MW Tipaimukh hydroelectric multipurpose project. NHPC has also signed a memorandum of understanding (MoU) with Orissa Hydro Power Corporation (OHPC) and Orissa Government for forming a joint venture with OHPC to develop three hydroelectric projects with a total capacity of 320 MW in Orissa.

Mr. Srivastava said NHPC was also providing consultancy services in various fields of hydro power to leading organisations in India and abroad. It has commissioned the 14.1 MW Devighat project in Nepal and 60 MW Kurichu project in Bhutan on a turnkey basis. Experts from NHPC are involved in executing projects in Myanmar, Bhutan and Tajikistan. The company has been appointed as the engineering and design consultant for the execution of 720 MW Mangdechhu power project in Bhutan.

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