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Interview transcript

As the monsoon continues to worry the agriculture sector and so the policy makers, the biggest immediate concern is for the hydro power sector. Country’s flagship hydro power company NHPC said that because of the delayed and weak monsoon, the hydro power production in the country is down by about 5 per cent. Though there is no need to press the panic button yet but if the monsoon continues to play hide & seek, then the situation may turn bad.
NHPC chairman also pointed out the fact that a power distribution company (discom) in Delhi – BSES - owes about Rs. 300 crore to NHPC. In fact, NHPC has not yet resumed the power supply of about 120 MW of power to BSES Rajdhani Power Ltd because of the outstanding dues. And this is at the time when Delhi’s power demand has gone up at all time high.

Below is the complete interview.

With Chamera-II, what is your capacity now and going ahead how much you plan to add in the financial year 2012-13?
With the addition of Chamera-III project, our capacity as on date is 5523 MW. This includes 1520 MW from our subsidiary NHDC. During the current year, we have planned to add a capacity of 1212 MW and we are trying hard to achieve this. In the next couple of months, we expect to commission remaining units of Chutak, TLDP-III full project as well as the Parbati-III project shortly.

What would the funding requirements for the year 2012-13 and how do you plan to raise the funds. From Domestic or overseas sources and how much have you already done?
During the current financial year, we have a capital expenditure of Rs.4090 cr. To meet the CERC guidelines, normally 70 per cent of this is to come by way of debt. Therefore, roughly Rs,2500 crore to Rs. 2800 crore will be raised through the market. As of now, we have not planned to go for overseas because in the past what we have seen that in the domestic market itself, we are able to get the money at the competitive rates - more cheaper than the foreign loans. We will kepp the options open between the domestic and the overseas; whichever is the commercially viable and better, we will go in that market.

One concern regarding the delay of monsoon or the lower monsoon is that, probably the hydro power plants are getting impacted. So, how much your company has been impacted and how much lower capacity you are working at?
Definitely the monsoon has some effect on the hydro projects. As of now, as per the data which is available; in the first quarter the total generation of hydro sector has gone down by 4 per cent as compared to the previous year corresponding period. As far as NHPC is concerned, it has an effect of 3 per cent. Roughly 200 million units short we have generated as compared to the previous year. But still the generation is more than the designed energy [capacity].

What about your supplies to Delhi discoms (power distribution companies)? You stopped the supplies. Have you got the payment [now]? Have you resumed the supplies?
In Delhi, we are supplying to three discoms. As of now, we are supplying to two discoms are on and supply to one discom is cut.

Which one is the discom (for which the power supplies have been cut)?
BRPL (BSES Rajdhani Power Ltd)

And how much is the due from BRPL?
Rs.190 crores, roughly.

And how much you use to supply to BRPL?
Around 120 MW.

You expect the payments will be made soon?
It depends upon, when they pay. There is no firm commitment as of now.

So, where are you supplying to compensate the production?
Whatever surplus is being regulated, that is forwarded to exchange and anybody is open to the purchase that power from the market. They are not affecting the generation. Generation is there. It is available for anyone who purchases from the market.

Your team has just come back from Myanmar, for the Shwezaye project probably after doing the DPR. So, are you going ahead with the project or you will be pulling out from the project?
We have completed the technical presentations and other things. And as of now the govbt of India has to decide about the future of the project. Whatever they will decide we will implement it.

Source: NDTV Profit