Saturday, May 14, 2022

NHPC incorporates a new subsidiary for RE, small hydro & green hydrogen projects

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  • The proposal to incorporate a subsidiary company for RE business had received a nod from the Board of Directors of NHPC in September 2021
  • The Board had also approved an initial equity infusion of Rs 20 crore

New Delhi: State-run NHPC Limited has incorporated a wholly-owned subsidiary company for the development of renewable energy (RE), small hydro and green hydrogen projects, the Miniratna PSU said in a regulatory filing to the stock exchanges on Friday. “… it is to inform that NHPC Limited has incorporated a wholly owned subsidiary in the name of "NHPC Renewable Energy Limited" having Corporate Identity Number (CIN): U40200HR2022GOI1 01419 with the Registrar of Companies, NCT of Delhi & Haryana, on 16.02.2022 (Certificate of Incorporation received on 18.02.2022) for development of renewable energy, small hydro and green hydrogen projects.”

Speaking on the occasion, NHPC Limited’s Chairman & Managing Director (CMD) AK Singh said, “NHPC’s has envisaged becoming a globally leading organisation for sustainable development of clean power. The incorporation of NREL shows our deep commitment towards tapping renewable energy which helps in reduction of carbon emissions and in producing clean and green energy.”

NHPC RE subsidiary will have initial equity of Rs 20 crore

The proposal to incorporate a subsidiary company for RE business had received a nod from the Board of Directors of NHPC in September 2021. The Board had also approved an initial equity infusion of Rs 20 crore. NHPC is expanding its renewable energy portfolio and has taken up several renewable energy projects under different modes. NHPC recently signed a Letter of Intent (LoI) with Rajasthan Renewable Energy Corporation Limited (RRECL) for the ‘development of 10,000 MW renewable energy (RE) projects/parks in the state of Rajasthan.’

Currently, NHPC’s total installed generation capacity stands at 7,071 MW, which includes 100 MW of solar and wind energy-based plants. Another 5,999 of hydro and 105 MW of solar plants are under construction.

Earlier, the formation of a separate renewable energy unit got the nod of the Department of Investment and Public Asset Management (DIPAM) and NITI Aayog in December 2021. The subsidiary company shall develop renewable energy projects either in standalone mode or through the formation of special purpose vehicles (SPV) with the collaboration of other agencies.

Backdrop

The news comes a day after the Central government unveiled India’s green hydrogen policy and announced a number of sops for manufacturers interested in setting up production facilities. India has set a target of putting in place 500 GW of non-fossil fuel based power generation capacities by 2030. At the COP-26 Summit, Prime Minister Narendra Modi had said that India would meet 50 percent of its energy requirements through RE by 2030 and will become a net-zero country by 2070. Green Hydrogen, solar, wind and hydro power are going to play a pivotal role in fulfilling India’s net-zero commitment.

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