PSU stock in focus after it plans to invest ₹84,000 Cr for 20-GW pumped storage capacity

Mini Ratna stock involved in generation and sale of bulk power to various Power Utilities has gained attention following the company’s announcement of a significant investment of Rs. 84,000 crore to establish 20 GW of pumped storage capacity. This ambitious move highlights the company’s commitment to expanding its energy infrastructure, drawing investor interest and boosting market sentiment.

Price Variation

On Monday, shares of NHPC Ltd opened at Rs.71.27 apiece but later surged to an intra-day high of Rs.73.25 apiece, rising from its previous close of Rs.73.29 each. However, the stock later pared some gains and was trading at Rs.72.28 per share. 

Capacity Enhancement

NHPC has outlined plans to invest approximately Rs.84,000 crore to establish 20 GW of pumped storage capacity. The total capital expenditure required for this ambitious project is estimated to be around Rs.1.20 lakh crore. This investment will primarily be facilitated through joint ventures (JVs), marking a significant step in the company’s efforts to expand its renewable energy portfolio and enhance its contribution to the national power grid. 

Joint Ventures and Projects

NHPC has partnered with the Andhra Pradesh government to develop pumped storage projects (PSPs) through a joint venture called ANGEL (APGENCO NHPC Green Energy Company). This collaboration includes two PSPs with a combined capacity of 2 GW, such as the 1 GW Yaganti project and the 800 MW Rajupalem project. The total capacity of these projects could potentially reach 6 to 8 GW.

In Gujarat, NHPC has signed a Memorandum of Understanding (MoU) with Gujarat Power Corporation Limited (GPCL) to invest approximately Rs. 4,000 crore in the 750 MW Kuppa Pumped Hydro Storage Project in Chhota Udaipur, with investments expected to begin in 2024/25.

NHPC has also entered into an MoU with the Maharashtra government to establish several pumped storage projects, including Kalu, Savitri, Kengadi, and Jalond.

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Current Capacity

NHPC currently has an installed capacity of 7,097.2 MW from renewable sources, including wind and solar, across 25 power stations, with 1,520 MW coming from its subsidiaries. 

The company has set ambitious goals to expand its capacity, aiming for a total of 23 GW by 2032 and more than 50 GW by 2047. By 2026-27, NHPC plans to increase its installed capacity to 14,561.2 MW, adding 7,417 MW through hydro and solar power projects.

NHPC also intends to allocate over Rs.8,000 crore in capital expenditure for FY26, primarily focusing on the development of 1,620 MW of hydroelectric capacity and approximately 1,490 MW of solar projects.

Financials 

Turning towards the financials of the company, NHPC Ltd reported Q3 FY25 revenue of Rs.2,287 crore, rising 11 percent from Rs.2,056 crore in the same quarter last year. However, Profit After Tax (PAT) decreased by 47 percent to Rs.330 crore, from Rs.623 crore in the same period. 

Written by – Siddesh S Raskar

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