NHPC and APGENCO Form Joint Venture for Renewable Energy Projects

NHPC, India’s largest hydropower development organisation, and Andhra Pradesh Power Generation Corporation (APGENCO) have jointly incorporated a new company named APGENCO NHPC Green Energy. The joint venture has been established with equal equity participation (50:50) from both organisations.

Focus on Pumped Storage and Renewable Energy Projects

The primary objectives of APGENCO NHPC Green Energy include the development, planning, promotion, and efficient execution of pumped storage hydropower projects and renewable energy ventures. These renewable energy projects encompass solar, floating solar, and wind energy generation. The company will also focus on activities such as:

• Planning, investigation, and research
• Preparation of feasibility and detailed project reports
• Construction, generation, operation, and maintenance of power stations
• Sale of power generated from these projects

Initial Projects and Future Expansion

Five pumped storage projects have been identified for joint implementation:

1. Yaganti PSP (1000 MW)
2. Rajupalem PSP (800 MW)
3. Gadikota PSP (1200 MW)
4. Aravetipalli PSP (1320 MW)
5. Deenepalli PSP (750 MW)

Additional projects will be considered and implemented based on mutual agreement between NHPC and APGENCO in the future.

Comprehensive Project Scope Under JV

The joint venture will undertake a wide range of activities, including but not limited to:

• Environmental management and surveys
• Feasibility and pre-feasibility reports
• Detailed engineering designs and layouts
• Equipment selection, material handling, and tender-related services
• Project management, construction supervision, and quality assurance
• Commissioning, operation, and maintenance of power projects
• Trading and sale of power generated

NHPC’s Leadership in Renewable Energy

NHPC, recognised as India’s largest hydropower developer, has also diversified into solar and wind power projects. As of September 30, 2024, the Government of India holds a 67.40% stake in NHPC. This joint venture with APGENCO marks another significant step in NHPC’s commitment to expanding India’s renewable energy capacity.

The partnership aims to not only bolster Andhra Pradesh’s energy infrastructure but also contribute to India’s clean energy goals by leveraging the expertise of both organisations in hydropower and renewable energy development.

Stock Performance

On January 24, 2025, NHPC share price traded down by 0.28% at 11:54 AM (IST) at ₹78.25. NHPC’s share price reached a 52-week high of ₹118.45 on July 15, 2024, and a 52-week low of ₹72.19 on January 13, 2025. As per BSE, the total traded volume for the stock stood at 2.49 lakh shares with a turnover of ₹1.94 crore.

At the current price, NHPC shares are trading at a price-to-earnings (P/E) ratio of 24.78x, based on its trailing 12-month earnings per share (EPS) of ₹3.16, and a price-to-book (P/B) ratio of 2.03, according to exchange data.

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