New Delhi: State-run NHPC Limited is set to expand its installed hydropower capacity by nearly 59 percent to 13 GW by FY2026-27 from the current 8.2 GW, driven by phased commissioning of four major projects over the next financial year, Chairman and Managing Director (CMD) Bhupender Gupta told investors during a post-earnings conference call. The company expects to add 2,100 MW of hydropower capacity by the end of FY2025-26 and a further 2,744 MW in FY2026-27.
The 2,000 MW Subansiri Lower Hydroelectric Project will account for the bulk of incremental capacity. Two units of the project have already been declared commercially operational. “Third unit is expected to be commissioned within this week and we will commission fourth unit and declare the COD by the end of March’26,” Gupta said. This means 1,000 MW of Subansiri will be operational by March 2026, with the remaining 1,000 MW to be commissioned by December 2026. “Full commissioning of Subansiri Lower Project (2000 MW) will be by December’26,” the NHPC CMD added.
Other projects expected to be commissioned in FY2026-27 include the 120 MW Rangit-IV project in Sikkim (November 2026), the 1,000 MW Pakal Dul project (December 2026) and the 624 MW Kiru project in Jammu and Kashmir (December 2026). “So, by the end of March’26, we are going to add additional capacity of 2,100 MW. Next year, our capacity addition will be 2,744 MW from hydro,” the management said.
During the first nine months of FY26, NHPC generated 25,849 million units (MUs) compared with 22,397 MUs in the corresponding period last year, reflecting a 15 percent increase. “… this is mainly due to commissioning of our Parbati-II Power Station (800 MW) and subsequent increase in generation of Parbati-III Power Station, which is due to the more water availability from the Parbati-II and increase in power generation in some of the other Power Stations,” Gupta said.
However, the Plant Availability Factor (PAF) for April–December stood at 79.27 percent, around 3 percent lower year-on-year due to monsoon-related shutdowns at Dulhasti, Salal, Chamera-I and Chamera-III stations. The increase in generation despite lower PAF underscores the contribution of newly commissioned capacity.
Beyond ongoing projects, NHPC plans to initiate construction of five to six new projects this year, comprising around 10,000 MW of capacity. The company has earmarked capital expenditure of Rs 13,300 crore for FY26, of which Rs 8,844 crore has been spent till December 2025. For FY2026-27, capex is planned at Rs 15,000 crore. The scale of planned project starts indicates an acceleration in execution pipeline, positioning the company for sustained capacity growth beyond FY27.
NHPC is also preparing to enter the pumped storage segment. The company plans to begin construction of at least two pumped storage projects (PSPs) in calendar year 2026, adding around 2,000 MW of capacity. Several PSPs are currently at the Detailed Project Report (DPR) stage, including Omkareshwar (640 MW) in Madhya Pradesh, Savitri and Kalu in Maharashtra, and Masinta (1,000 MW) in Odisha. Together, these projects represent a potential capacity of 5,500–6,000 MW.
“… most of the PSP projects are under DPR stage as of now and as you rightly said, we need to have viable projects only. So, we are looking at viable projects,” Gupta said. The projects will require technical and financial approval from the Central Electricity Authority before execution. The management indicated that generation cost for PSPs is estimated at around Rs 4.50 per unit, with total cost including pumped storage working out to roughly Rs 7 per unit.
“So, considering the addition of solar in the grid, we definitely require the storage power and I think whatever we generate, I am 100 percent sure that we will be very easily able to sell that to beneficiaries who have solar power in their portfolio,” Gupta said. NHPC is exploring PSP opportunities across Andhra Pradesh, Odisha, Madhya Pradesh, Chhattisgarh, Gujarat, Punjab, Rajasthan and Maharashtra.
With 4.8 GW of hydro capacity slated for addition over two years and a 10 GW project pipeline under initiation, NHPC is entering its largest expansion phase in recent years. While hydro remains the core segment driving the growth, the planned push into pumped storage signals a strategic alignment with rising renewable penetration and grid-balancing requirements.
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