NHPC to tap S Asia power potential

Buoyed by the support shown by the power ministry, the National Hydroelectric Corporation plans to make a big splash in the country's neighbourhood through projects in Myanmar, Bhutan and Nepal.

It wants to set up projects with a combined capacity of around 3,400 Mw that may need an investment of around Rs 17,000 crore.

"We may set up these projects on a stand-alone basis or through a joint venture with the governments of these countries. If we do enter into a joint venture agreement we plan to have a minimum 51 per cent stake in that," NHPC Chairman and Managing Director S K Garg told Business Standard.

The company is interested in the 1,200 Mw Tamanti project in Myanmar, the 672-Mw Mangnichu project and stage-I and stage-II of the 1,000-Mw Phunasachu project in Bhutan. NHPC is also eyeing the 480-Mw Upper Karnali project in Nepal.

"NHPC is not only interested in preparing the detailed project reports but if given an opportunity, would also like to construct them. There is huge potential for hydroelectric power development in these countries. It is an attempt on our part to become a transnational organisation and is also in line with our vision and the government's desire," Garg added.

The company is looking for overseas opportunities, as it believes this will help it become a 10,000-Mw company by 2012 and benefit neighbouring countries in the process.

NHPC registered a net profit of Rs 701 crore in 2005-06 and a turnover of Rs 1,834 crore during the same period.

The company is also working on bringing out its initial public offer (IPO) as directed by the power ministry.