The Hindu Business Line : Nuclear Power Corpn enters hydropower biz

New venture
NPCIL will initially restrict itself to financial assistance in Maharashtra projects
Also eyeing tie-up with NHPC, Uttaranchal Jal Vidyut Nigam
Diversification plan includes foray into wind energy segment

NEW FORAY: File photo of Tarapur atomic power project

New Delhi June 4 Nuclear Power Corporation of India Ltd (NPCIL) — the only company authorised to build nuclear power plants in the country, besides sister-concern Bharatiya Nabhikiya Vidyut Nigam (Bhavini) — is entering the hydropower business.

The nuclear player has kicked off its foray into the sector by jointly developing two pumped storage schemes in Maharashtra, with cumulative investments of nearly Rs 3,000 crore, in partnership with Tehri Hydro Development Corporation (THDC).

"NPCIL would initially restrict its involvement to offering financial assistance in the Maharashtra projects, while THDC would provide the technical expertise. The NPCIL-THDC alliance is expected to be extended to other hydro projects as well," a Government official involved in the exercise said.

Besides THDC, NPCIL is also looking at tie-ups with National Hydroelectric Power Corporation and the Uttaranchal Jal Vidyut Nigam for developing hydro projects in Uttaranchal, where capacities totalling about 500 MW could be set up through the joint venture route.

NPCIL would pick up minority equity of around 26 per cent in these projects, which are under evaluation. NPCIL is also open to the idea of taking up hydroelectric project development with higher equity involvement in due course, the official said.

Nuclear operations

NPCIL is currently operating 14 nuclear power units at six locations and is implementing construction of eight ongoing nuclear power plants. The company, which has a generation capacity of 4,120 MW, accounts for about three per cent of the country's power generation capacity.

NPCIL's diversification plans, which also include a foray into the wind energy segment, come at a time when a number of companies in the power business are diversifying aggressively across the value chain.

State-owned National Thermal Power Corporation Ltd, which has largely been a coal-based power generator, has been attempting to diversify into other forms of power generation, including nuclear, hydroelectric, geo-thermal power and even wind-based projects, in order to bring down its dependence on fossil fuels and add cleaner sources to its fuel mix.

NTPC is also looking at entering the equipment manufacturing space. PTC India Ltd, which started out as a electricity trader, is eyeing the role of a total solutions provider in the power supply business now.