A Parliament panel led by MP Baijayant Panda has flagged recurring corporate governance lapses at NHPC and called for faster execution of hydro and pumped storage projects. This comes amid the state-run power producer plans investments of Rs 1.52 lakh crore over the next decade.
The observations formed part of six reports on key public sector undertakings submitted by the panel, highlighting both NHPC's expansion plans and the execution challenges facing India's hydropower sector.
NHPC is targeting 50 GW of installed capacity by 2047, making faster project execution critical to its long-term growth plans.
The panel has specifically pushed for quicker development of pumped storage projects, which can provide the grid with greater flexibility as renewable power generation expands.
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However, the panel identified several bottlenecks that could delay hydro projects. These include land acquisition, forest clearances and other regulatory approvals, along with a shortage of specialised contractors with expertise in hydropower construction.
The panel also called for uniform implementation agreements across states to reduce delays and improve certainty for hydro projects.
Another concern highlighted by the committee was the sector's dependence on diesel. High diesel usage during project construction is adding to costs and could further affect project economics.
For NHPC, the concerns come against the backdrop of an ambitious investment programme. The company's proposed ₹1.52 lakh crore capital deployment will require timely clearances, adequate execution capacity and stronger coordination with state governments.
Also Read: NHPC Shares Fall After Government Plans To Sell Stake At 8% Discount
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