NHPC Revises Loss Incurred At Sikkim Power Station Due To Flash Flood To Rs 1,076 Crore
NHPC reported material damage of Rs 539 crore and business interruption losses of Rs 537 crore at its Teesta-V Power Station in Sikkim, with restoration contracts awarded and work progressing.
NHPC Ltd. on Thursday revised the loss incurred at its Teesta-V Power Station in Sikkim due to flash floods to Rs 1,075.97 crore. The earlier loss amounted to Rs 1,005.10 crore that included material damage loss and business interruption loss.
The total loss incurred includes material damage loss of Rs 538.70 crore and business interruption loss of Rs 537.27 crore, according to the exchange filing by the hydropower company. The revised loss amount has been intimated to the insurer, the company added.
The company has received an on-account payment of Rs 150 crore against material damage loss. It also expects an on-account payment of Rs 250 crore against business interruption as it is in the advanced stage of approval.
The company has also updated that all the major restoration work has been awarded, and the restoration activities are ongoing.
Loss Due To Landslide
In addition, the company has informed the insurers of an initial assessment of material loss amounting to Rs 327.67 crore due to a landslide that occurred in Aug. 2024. The company also noted that the tailrace tunnel and GIS are still buried under debris; hence, it has caused hindrance to further inspection of the damage.
The company also added that the award of contracts for restoration works has reached an advanced stage of tendering.
The Haryana-based firm on Thursday also said that it expects the three units of 250 MW each of the Subansiri Lower HE Project will be completed in May 2025 and the remaining five units will be completed in May 2026 in a phased manner.
NHPC's stock rose as much as 1.04% during the day to Rs 82.90 apiece on the NSE. The stock closed 0.01% lower at Rs 82.04 per share. This compares with a 0.10% advance in the benchmark Nifty 50. It has risen 27% in the last 12 months and 24.02% year-to-date.
Out of 10 analysts tracking the company, five maintain a 'buy' rating, one recommends a 'hold,' and four suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 17%.
