Shares of NHPC Ltd. fell on Thursday after the company closed its operational Teesta-V hydropower station in Sikkim due to the Oct. 4 flash flood.
The company also halted work on another project that was under construction, according to an exchange filing.
The company is carrying out a detailed assessment of the loss, it said. The two power assets—510 MW Teesta-V Power Station and the 500 MW Teesta-VI Hydro Electric Project being executed by Lanco Teesta Hydro Power Ltd., a wholly owned subsidiary of NHPC—are fully insured, the company said in the filing.
“Considering the emergent situation, all units of Teesta-V Power Station have been shut down. A detailed assessment of losses and damages suffered will be carried out after the water level recedes,” it said.
The assets and loss of profit of the power station are fully insured under mega insurance policy. All assets and works of the Teesta-VI HE project are also insured under the Construction All Risk Policy, it said.
Other relevant information will be revealed in due course, the company said.
Flash floods triggered by a cloudburst on Tuesday night in the Lhonak Lake region caused the water levels to rise downstream in the Teesta river basin. This surge in water levels has affected the areas where the river flows, including Sikkim, West Bengal, and Bangladesh.
Shares of NHPC Ltd. fell as much as 2.91% before paring loss to trade 1.88% lower at 11:21 a.m. This compares to a 0.46% advance in the NSE Nifty 50.
It has risen 31.45% on a year-to-date basis. Total traded volume so far in the day stood at 2 times its 30-day average. The relative strength index was at 50.21.
Of the nine analysts tracking the company, eight maintain a 'buy' rating and one suggests a 'sell,' according to Bloomberg data. The average 12-month analysts' price target implies an upside of 7.5%.
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