NHPC, the state-owned hydro power company, witnessed a nearly 2% increase in its share price, reaching Rs 51.40, during early trade on August 24. The surge came after the company entered into a Memorandum of Understanding (MoU) with Andhra Pradesh Power Generation Corporation (APGENCO). This collaboration aims to pave the way for the implementation of pumped storage hydro power projects as well as various renewable energy initiatives, such as solar, floating solar, and wind projects, within the state of Andhra Pradesh.
Under the MoU, NHPC and APGENCO will work together to establish a framework for cooperation and joint venture formation. The joint venture company (JVC) will be responsible for executing the projects allocated by the Government of Andhra Pradesh. These projects will be executed in phases and will involve the operation of the power plants, trading, and sale of the generated power. The collaboration will also adhere to the guidelines outlined in the National Economic Policy, as well as regulatory provisions set by APERC (Andhra Pradesh Electricity Regulatory Commission) and CERC (Central Electricity Regulatory Commission).
Currently, NHPC's stock is trading slightly below its 52-week high of Rs 52.71, while it remains considerably higher than its 52-week low of Rs 33.60, which was observed on August 23, 2022. The company's performance in the June 2023 quarter showcased a net profit of Rs 1,036.86 crore, with revenue experiencing a marginal decline to Rs 2,757.26 crore.
This collaboration is not the only recent development for NHPC. On August 21, the company also signed a MoU with RITES, a consulting firm, to work together on providing comprehensive consultancy services for rail infrastructure facilities related to NHPC's hydropower projects. Furthermore, NHPC received project allocations from the Arunachal Pradesh government earlier in the year, involving the Subansiri Upper Hydroelectric (HE) Project (2000 MW) and the Kamala HE Project (1800 MW).
