NHDC to pay 10% dividend

Narmada Hydro-electric Development Corporation (NHDC), a subsidiary of Madhya Pradesh government said it will pay 10 per cent dividend this year as it has taken two thermal power project of Madhya Pradesh government with 1,320 Mw capacity each.

The company’s chairman S K Garg, said its net profit had gone down due to certain accounting provisions. The net profit, he said has slipped to Rs 212.30 crore from Rs 330 crore. The company generated 3,070 million units of power from its 1,000 Mw Indira Sagar and Omkareshwar projects which was 2,368 million unit in 2008-09.

The company in its annual general meeting today also decided to sign a deal for Shahpura thermal power project of 1320 Mw. The project was earlier offered to National Thermal Power Corporation (NTPC) but the deal could not materialise. “State government is trying to hand out the project to any private or government company but there were no takers.

The project has been handed over to NHDC since its parent company NHPC has better chances to get coal linkage,” a government source said,

While speaking to Business Standard, S K Garg said, “We are waiting for coal linkage for even Rewapur thermal power project. We hope we will get coal linkage for both the projects.”

The company has no more potential for hydel power projects; it is also exploring possibilities to set up a 100-Mw wind power project in Betul. “We have roped in a Chennai based agency C-Wet to prepare a detailed report in this regard and conduct a survey.”

However, Madhya Pradesh does not offer potential for wind power projects. “As many as 12 companies have applied for various locations but wind speed is hardly 5 miles per hour as a result capacity utilisation is at 18 per cent in Madhya Pradesh as against 27 per cent in Tamil Nadu,” added a private wind power company executive.

The ISP is also facing hurdles in its Indira Sagar and Omkareshwar projects as it is facing litigations from oustees of both the projects in Supreme court and high court.