Hydropower is the basic need for stabilisation of grid: K M Singh

Interview with Chairman & managing director, NHPC Ltd

As a leader in hydropower generation, with a capacity of 6,507 Mw installed capacity, the National Hydroelectric Power Corporation (NHPC) is a bellwether for hydropower sector in the country. Stuck in problems, a slew of projects have been plagued by cost overruns. In an interview with Jyoti Mukul & Shreya Jai, K M Singh, chairman and managing director, NHPC, says the perception that there is no growth in hydropower is incorrect. Edited excerpts:

What is your outlook for the hydropower sector?

The perception of not much growth in the hydro is not correct. Hydropower potential in the country is identified up to 140,000 Mw and, so far, it is hardly 40,000 Mw, less than 50 per cent. Water is a state government subject and unless the state allows, one cannot harness its potential. Depending on the condition of the location, rocks, availability of water, and space for powerhouse and other facilities, a decision on the design is taken. The first National Democratic Alliance government had identified around 50,000-Mw hydro potential and prefeasibility reports were prepared for Arunachal Pradesh.

Currently, a lot of emphasis is being given to renewable energy sources, to meet increasing demand of energy. Hydro, being a clean source, enhances energy security of the country and meets peak demand. An impetus to hydropower would bring down fossil fuel demand and facilitate water security, flood control and irrigation.

Hydropower is the basic need of a country for maintenance and stabilisation of grid. Hydrothermal mix is required. For peaking power, which can be put on production within few minutes, only hydro, gas or nuclear is there. Fate of gas is known. Only hydro is a replenishable natural source. Even solar and wind are only available during the day.

India has an economically viable exploitable hydropower potential of 145,320 Mw, of which 37,688 Mw has been developed and the balance under development.

Where do you see growth for NHPC?

Earlier, Arunachal Pradesh gave NHPC around 20,000-Mw projects. We started the survey and investigation but in the meantime, in 2003, Electricity Act was passed and private companies were allotted projects. The state government took away some projects from us.

NHPC, currently, has an installed capacity of 6,507 Mw, of which 4,987 Mw is on standalone basis. In the current financial year, we are expecting up to 80 Mw by commissioning two units of TLDP-IV in West Bengal. By the end of the 12th Plan, we aim to add 1,702 Mw in our current installed capacity, of which six projects of 1,212 Mw have already been commissioned.

In Arunachal, Twang I and II of 1,400 Mw are under clearance. Detailed project report is already submitted for these two projects. In Kotlibhel-IA in Uttarakhand, there is a Supreme Court ban, but we are expecting these will be cleared because it not on the main river. It is one of the six projects to be cleared.

What is the company’s capital expenditure plan?

In 2015-16, Rs 4,100 crore was planned, but we will spend around Rs 3,600 crore. We have two projects where there are problems — Subanshri Lower and in Parbati project in Himachal Pradesh. There was geographical problem but some progress has been made. 

What is NHPC’s plan for diversification in the future?

Our core business is hydro and whatever project and potential is there we will work for it. But we are also looking to expand beyond hydropower. We have planned four renewable energy projects on an ownership basis — two wind power projects of 130 MW and two solar power projects of 100 MW are under clearance stage. We are also considering projects though JV mode — one thermal power project in Pirpainti, Bihar and one 50 MW solar power project in UP.

Is it correct to say that the government’s emphasis has moved away from generation to transmission and distribution?

Since hydro takes time to come up right from the conception of the project till eventual commissioning due to various reasons like remote location, local problems, strikes, the government went ahead for capacity addition in thermal which can be commissioned during short period and in large scale. In less time, one can add 2,000 MW thermal compared to 100 MW or 500 MW of hydropower. Irrespective of installed projects, in five to seven years one can commission project. NHPC completed Omkareshwar in Madhya Pradesh and Chamera in Himachal Pradesh before time. Another 1,000 mw Indrasagar was completed in four years. It depends on location and components required to get the potential.