Date:15/04/2006 URL: http://www.thehindu.com/2006/04/15/stories/2006041503931500.htm

Business

NHPC to tap market

Staff Reporter

NEW DELHI: Announcing a net profit of Rs.701 crore in 2005-06, the National Hydroelectric Power Corporation (NHPC) has said it will enter the capital market by bringing an Initial Public Offer (IPO) by the end of 2006. "The Union Power Ministry has asked us to initiate the process in this regard. We have started the work and will come out with the IPO either by December or by the end of current fiscal,'' said NHPC Chairman and Managing Director S. K. Garg.

Addressing the company's annual press conference here on Thursday, Mr. Garg announced NHPC's financial results for the fiscal ended March 2006. The company achieved a turnover of Rs.1,834 crore in 2005-06 compared to Rs. 1,668 crore in 2004-05. Reacting on marginal hike in the profit, he said it would have been over Rs. 800 crore but the company had to write off Rs. 52 crore, while Rs. 33 crore had to be adjusted because of changes in accounting standards and another Rs. 25 crore the company had to pay as arrears due to hike in pay scale.

To invest Rs. 60,000 cr.

Stating that the NHPC would be investing Rs. 60,000 crore during the Tenth and Eleventh Plans, Mr. Garg said funds would be raised from the domestic and international markets besides internal accruals.

Regarding the company's loss of five hydroelectric projects in Arunachal Pradesh to private players, Mr. Garg said the company had petitioned the Power Ministry against the State Government's decision as the detailed project reports of at least two projects were prepared by them.

"However, the Union Power Ministry had asked the NHPC to develop hydel capacities totalling 23,000 MW in the State by undertaking seven projects," he added.