NHPC to pilot merger of central hydropower PSUs

The idea is to create a central public sector unit of hydro power units

The proposed merger of four central hydro power utilities —the National Hydroelectric Power Corporation (NHPC), Tehri Hydro Development Corporation, Satluj Jal Vidyut Nigam and North Eastern Electric Power Corporation — into a single entity will see NHPC taking the lead role. NHPC’s chairman and managing director has been made the nodal officer to pilot the proposed merger, which seeks to bring in greater synergy and operational efficiency.

The combined installed capacities of these four utilities, currently at 11,000 Mw, constitutes 30 per cent of the total hydropower capacity in the country. They are adding another 17,558 Mw.

Although hydropower generation did not grow over the past decade, it is 17 per cent of the total power basket. Land acquisition and rehabilitation and resettlement problems have stalled and delayed projects in the sector.

“The idea of the proposed merger is to create a central public sector unit of hydro power units,” said an official, who did not wish to be named.

Welcoming the move, the All India Power Engineers Federation said states should now replicate the idea to iron out administrative and technical problems in the energy sector. “We will soon write to Uttar Pradesh (UP) Chief Minister Akhilesh Yadav to consider unifying the different power utilities in the state under a single entity on the model mooted by the Centre,” said Shailendra Dubey, chairman, All India Power Engineers Federation.

According to him, unification is imperative to solving the power crisis in UP. There are eight power utilities in the state, including five power distribution companies and a utility each for transmission, generation and hydro power segments.

Dubey said the merger of power utilities had been successfully implemented in Kerala, Himachal Pradesh, Punjab and Tamil Nadu.

"The respective state electricity boards were de-merged in haste under pressure from bureaucrats and separate corporations created, although the Electricity Act had only talked of corporatisation and not unbundling of utility," he added.