Indian hydropower group forays into thermal power

NHPC will enter the thermal power generation business through joint ventures with the thermal generating states of Bihar, Jharkhand, Odisha and Chhattisgarh.

The board of the Indian public sector hydropower producer has given its approval for the plan.

The National Hydropower Corporation, planning to diversify its business, had approached the state governments of coal rich states to set up thermal projects.

But it had received a lukewarm response from Bihar and no communication from the remaining states. The problem, as it turns out, is NHPC`s lack of experience in the vast thermal sector.

The hydel major has been making strenuous efforts to develop in house expertise for thermal projects. However, relying on this single measure is bound to delay NHPC`s foray into the sector by a considerable time period.

The Board of Directors stated that the hydel major cannot afford to be selective about its equity share in JVs and must be willing to be a minority partner for upcoming projects.