The NHPC board has approved amendments which will enable the company to apply to the power regulator Central Electricity Regulatory Commission (CERC) for a trading licence. This decision is in line with the power ministry's plan to make NHPC an aggregator for meeting the demand of peaking power.
In an interview with CNBC-TV18, Mahesh Kumar Mittal, Director-Finance & CFO of the company spoke about the latest happenings in his company and sector.
Our board has taken a decision that NHPC should apply for a trading license because there are certain trading opportunities available in our market which we want to explore and avail. So we will be applying for the trading license shortly, he said.
There is a robust growth in profitability. We have maintained a steady dividend payout rate, he added.
On Moody’s rating upgrade, he said that this will help raise debts at a lower rate.
According to him finance cost will be down by over Rs 100 crore in FY19.
Speaking about revenue model for power trading business, he mentioned that trading margin will be fixed by CERC and trading volumes will be decided later.
For full interview, watch accompanying video...
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