NHPC Pushes Back Investment In Kuppa Pumped Storage Project In Gujarat

State-owned NHPC on Tuesday announced a delay in its investment plans for the 750-MW Kuppa Pumped Storage Project in Chhota Udaipur, Gujarat. The company stated in its exchange filing that survey and investigation works for the project had been halted due to circumstances beyond its control, but it expects these activities to resume shortly.

As a result, the commencement of investment in the project is now envisaged to begin in fiscal 2026, rather than the initially proposed fiscal 2025.

Earlier, on Jan. 3, 2024, NHPC had signed a Memorandum of Understanding with Gujarat Power Corporation Ltd. at the Vibrant Gujarat Global Summit to invest Rs 4,000 crore in the Kuppa Pumped Storage Project, with the initial planned investment year set for 2024-25.

In other developments, NHPC also announced on Monday that it had successfully completed trial runs for Units 1, 2, and 3 (each 200 MW) of the Parbati-II Hydroelectric Project in Himachal Pradesh, with the commercial operation date set for Tuesday. The trial run and operationalisation for the remaining fourth unit will be announced in due course, it said in the filing. 

Additionally, NHPC revealed that its 300 MW Bikaner Solar Power Project had been connected to the Inter-State Transmission System and was injecting 31 MW of power into the grid as of Monday. The company plans to announce the commercial operation date for part capacity (100 MW) in phases, with the full 300 MW project expected to be commissioned by Aug. 31.

In March, NHPC’s board of directors approved a borrowing plan to raise up to Rs 6,300 crore for the financial year 2026. The funds will be raised through secured/unsecured corporate bonds, term loans, or external commercial borrowings and may be issued in multiple tranches.

The hydropower company reported a 47% year-on-year drop in its consolidated net profit, which fell to Rs 330.1 crore for the December quarter, compared to Rs 623.3 crore during the same period in the previous year.