NHPC eyes £ 2,000 CR via asset -securitization for the third consecutive year

Copyright © HT Digital Streams Limit all rights reserved. However, companies NHPC eyes that increase another £ 2,000 CR via asset securitization in FY26 NHPC have not yet completed the assets to be securitized, and discussions are summarized on NHPC’s secure on the security of its projects to support the expansion in hydrop power and renewal projects. The company exceeded the target in FY25. New Delhi: NHPC LTD is considering raising around £ 2,000 by securing assets in the coming financial year, as the state-run water power major wants to raise money for expansion. However, the largest water power business in India has not yet completed the assets to be securitized and the discussions are underway, people said on condition of anonymity. The company did not respond to FY26 on the target. However, in response to a Mint inquiry, a NHPC spokesman said: “For FY25 it is informed that the company has reached the £ 2,000 crore monetization goal through securitization of free cash flow (equity) of Dulhasti power station, UT of Jammu & Kashmir, for the next 8 years with total returns of £ 2,348.45 crore. ” In FY24, the hydropower Major earned the return on the equity of its Kishanganga power station in J&K for eight years. Read more: US market uncertainty weighs heavily on where -energy -securitization involves conversion of an illiquid asset or a group of assets or their expected future cash flow in investing securities, on which investors are paid interest and head. According to value, the power sector is 7% of the assets offered under the union’s national monetization pipeline. It contains power generation assets totaling 6 gigawatts (GW) of water power and renewable energy assets, accounting for £ 39,832 crore, and power transfer assets that make up as much as 45,200 crore. For NHPC, an ‘Navratna’, it is to finance the expansion of its water power, pump storage and solar projects. Once the asset for securing returns for the fiscal is completed, NHPC will seek bids from banks and financial companies that do not bank. The financial institution that offers the lowest discount rate or the highest amount for securitization will be selected and the project or the asset will be pledged with it. It works as a loan for the business, and NHPC will retain the ownership of the project. India’s Monetization Pipeline NHPC’s target of £ 2,000 crore for the upcoming fiscal coming at a time when the government is working on the next phase of the National Monetization Plan. While the trade union budget is being offered 2025, Finance Minister Nirmala Sitharaman said: “Build the success of the first asset-monetization plan announced in 2021, the second plan for 2025-30 will be launched to plow the capital of £ 10 Lakh Crore in new projects. Read more: Do you have to bet on Tata Power’s daring green energy print? NHPC also has massive investment plans across water power, Pumped Storage Projects (PSP) and other green power projects. It aims to take its water power capacity to 22 GW through FY34, from the current 7.3 GW. The company would also develop about 20 GW cumulative pump storage capacity, mostly with the state -supported entities. In an interview with Mint in February, NHPC chairman and managing director Raj Kumar Chaudhary said he intended to invest about £ 84,000 to set up the 20 GW PSP capacity, which would require an overall capex of about £ 1.2 trillion. NHPC also aims to list its subsidiary NHPC Renewable Energy Ltd by FY27 after scaling its green capacity. State -controlled power sector companies have followed a mix of models to realize the maximum value. This includes the creation of a holding company and then the sale of interest to raise money; Initial Public Offers (IPOs), Cash Flow -Monetization and the erection of infrastructure investment trusts. Catch all the corporate news and updates on live currency. Download the Mint News app to get daily market updates and live business news. More Topics #nhpc Mint Specialies