New Delhi: NHPC Ltd is considering proposing ₹According to people familiar with the matter, $200 million will be securitized in the upcoming fiscal year as state-owned hydropower specialists seek to raise funds for expansion.
However, India’s largest hydropower company has not yet identified assets to be securitized and is being discussed.
The company did not respond to the question of the fiscal year 26 target.
However, respond to the query MintA NHPC spokesman said: “For fiscal 25, the company has reached its monetization targets for the company,” he said. ₹Dulhasti Power Station of securitized free cash flow (return on equity) of Rs 2,000 crore, Jammu & Kashmir’s UT, for the next 8 years, total earnings are ₹23.4845 million. ”
In FY24, Hydropower Professional made its return on equity at Kishanganga Power Station in J&K for eight years.
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Securitization requires converting an under-liquidity asset or a set of assets or its expected future cash flow into investors’ interest and principal.
According to value, the power sector accounts for 7% of assets provided under the national monetization pipeline of the Union Government. It includes total 6 GW (GW) of hydropower and renewable energy assets ₹398.32 million, electricity transmission assets account for ₹4520 billion.
For NHPC, “Navratna” is intended to fund the expansion of its hydropower, pump storage and solar projects.
Once the assets that have completed securitization returns for fiscal fiscal revenue, NHPC will seek bids from banks and non-bank financial companies. A financial institution that provides the lowest discount rate or the highest securitization amount will be selected and the assets or assets will be guaranteed. It can be used as a loan to the company, and NHPC will retain ownership of the project.
India’s monetization pipeline
NHPC’s goal ₹The upcoming fiscal 20 billion rupees is at the next stage of the government’s monetization plan.
Finance Minister Nirmala Sitharaman said in submitting the union budget for 2025: “Based on the first asset monetization plan announced in 2021, the second plan will be launched in 2025-30 ₹1 million for the new project. Regulatory and fiscal measures will be challenged to support the program. ”
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NHPC also has large-scale investment plans in hydropower, pumped water storage projects (PSPs) and other green power projects.
Its purpose is to increase its hydropower capacity to 22 gw from the current 7.3 GW. The company will also develop approximately 20 GW of cumulative pump storage capacity, mainly state-backed entities. In an interview Mint In February, NHPC Chairman and Managing Director Raj Kumar Chaudhary said it plans to invest ₹84,000 million kilowatts of PSP capacity, which will require approximately the overall capital expenditure ₹1.2 trillion.
NHPC also aims to list its subsidiary NHPC Renewable Energy Co., Ltd. for fiscal year 27 after expanding its green capacity.
State-owned power sector companies have incorporated various models to achieve maximum value. These include creating a holding company and then divesting shares to raise funds; initial public offerings (IPOs), monetizing cash flows and building infrastructure investment trusts.
