State-owned NHPC has slashed its capital expenditure plan for the current Five-Year Plan by 31% from Rs 29,000 crore to Rs 20,000 crore. While, NHPC's parent ministry had finalised a target of 3,130 MW of fresh capacity addition, the company expects only 1,702 Mw - 54 per cent of the target - to be commissioned.
Company’s decision is on grounds of clearances and law-and-order-related issues, which have affected its projects' progress. The biggest concern for the company at the moment is the significant delay in conversion of Work-in-Progress (WIP) into operational assets, which has a substantial amount of capital working in it.
NHPC is engaged in the planning, development and implementation of an integrated and efficient network of hydroelectric projects in India. It executes all aspects of the development of hydroelectric projects, from concept to commissioning.
