NHPC Revises MoU with Maharashtra Government for 7,350 MW Renewable Energy Storage Systems

NHPC Ltd, the state-owned hydropower company, announced on September 3, 2024, that it has revised its memorandum of understanding (MoU) with the Department of Water Resources (WRD), Government of Maharashtra. The updated agreement focuses on the development of pumped storage projects (PSPs) across Maharashtra, aimed at boosting the state's renewable energy storage capacity.

The new MoU follows an earlier agreement with Maharashtra's Department of Energy to develop renewable energy sources, including solar, wind, and hybrid systems, totalling 7,350 MW. The revised agreement, signed after a corrigendum to the state's policy for developing PSPs through public-private partnerships, includes four major PSPs: Kengadi (1,550 MW), Savitri (2,250 MW), Kalu (1,150 MW), and Jalond (2,400 MW).

NHPC's Financial Performance

NHPC Ltd reported a 1.2% year-on-year (YoY) increase in net profit, reaching ₹1,108.5 crore for the first quarter ending June 30, 2024. In comparison, the net profit for the same period last year was ₹1,095 crore. However, the company experienced a 2.3% decline in revenue from operations, amounting to ₹2,694.2 crore, down from ₹2,757.3 crore in the corresponding period of the previous fiscal year.

READ| Raymond Lifestyle Gears Up for Stock Market Debut with Ambitious Growth Plans

At the operating level, NHPC's earnings before interest, tax, depreciation, and amortization (EBITDA) dropped by 2.8%, reaching ₹1,462.6 crore in Q1 FY25, compared to ₹1,504.6 crore in Q1 FY24. The EBITDA margin stood at 54.3% in the reporting quarter, slightly lower than the 54.6% recorded in the first quarter of FY24.

Shares of NHPC Ltd closed at ₹99.04 on the BSE, up by ₹1.18, or 1.21%, following the announcement of the revised MoU.

Reference: Mint