In an interview to CNBC-TV18 after announcement of NHPC results, chairman and managing director ABL Srivastava says that though the quarter was very good for the PSU, the woes of capacity addition and project delays continue to plague the company.
Below is an edited transcript of the interview on CNBC-TV18. Also watch the accompanying video.
Q: NHPC's net profit increased to around Rs 802 crore. So what really added that extra fillip? How has the quarter been?
A: The quarter has been very good. NHPC posted a profit of roughly Rs 800 crore during the quarter. The total profit for the year has gone up from Rs 2,167 to Rs 2,772 core, roughly posting an increase of 28%. This has been possible with the increase in generation, impact of tariff, and increase in other income.
Q: There are concerns regarding the capacity addition target. NHPC has not been able to meet its FY12 capacity addition target of around 330 MW. So what are you really targeting in terms of capacity addition in FY13 then?
A: Capacity addition is a matter of concern. NHPC has not been able to deliver what it committed to the ministry and investors. There has been delay in the various projects which were to be commissioned last year due to various reasons.
Now in the next 12 months we are targeting to add over 1200 MW through Uri II, Chamera III, Chutak, Nimoo Bazgo, the Teesta Low Dam Project (TLDP) project and the Parvati III.
Q: So you are targeting over 1200MW over the next 12 months. Are you sticking to the capex planned for FY13 of or has it been revised?
A: For the current fiscal 2012-13, NHPC targets a capex of over Rs 4,000 crore.
Q: There have been project delays including problems in projects in Jammu & Kashmir. Whats the status?
A: As far as the problem in Arunachal Pradesh is concerned, the Subansiri project is at a stand still from the December 16. The locals have started an agitation regarding concerns on safety of the dam and all efforts to convince them have been futile.
The Planning Commission has constituted a committee consisting of the two experts Thate and MS Reddy to look into the various aspects of the dam. Their report is expected to be submitted by May 31.
But this report should come anytime in the first week of June. The J&K government imposed a water cess that has been paid by NHPC in terms of the High Court’s decision.
The amount is to be recovered from the beneficiaries in terms of the Central Electricity Regulatory Commission (CERC) regulation.