India’s NHPC secures financing for three projects totaling 1,052 MW

India’s National Hydroelectric Power Corp. (NHPC) has secured a 30 billion rupee (US$752 million) line of credit from India’s Power Finance Corp. Ltd. (PFC) to finance implementation of three major hydroelectric projects.

Officials of NHPC and PFC signed memoranda of agreement September 18, their first such agreement for project financing.

Projects to be funded, during India’s 11th Five-Year Plan, are 800-MW Parbati 2 in Himachal Pradesh State (HNN 2/21/06), 132-MW Teesta Low Dam 3 in West Bengal State (HNN 3/22/07), and 120-MW Sewa 2 in Jammu &Kashmir State. (HNN 4/9/07)

The line of credit can be drawn upon for six months after project commissioning and is repayable over ten years.

NHPC Chairman S.K. Garg said September 20 that the hydro utility plans to launch an initial public offering of 10 percent of the company in the first quarter of 2008.

“We have a mandate for (selling) 24 percent, but in the last quarter of this fiscal we hope to launch an initial public offer for 10 percent, and an additional 5 percent disinvestment of government stake in the firm,” Garg told reporters.

The NHPC head said the company also aims to add 5,300 MW of new generating capacity by 2011-2012.

Earlier this year, a banker involved in the situation said NHPC planned to sell 13.6 percent of the company in an initial public offering to raise up to 25 billion rupees (US$630 million). (HNN 4/6/07)

NHPC has 11 completed hydro projects of 3,755 MW, 13 under construction of 5,712 MW, 12 in development or investigation totaling 16,400 MW, as well as other joint venture and turnkey projects.

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