NHPC To Monetise Uri-I Plant's Future Cash Flow To Fund Capex
NHPC plans to monetise the future cash flows of its power plants to fund its capital expansion plans.
NHPC Ltd. on Wednesday said it will monetise the future cash flow from its power plant in Jammu & Kashmir among others to fund its capital expenditure plan for fiscal 2022-23.
The state-run hydropower company on Wednesday in its exchange filing said its board of directors have considered and approved the proposal for monetisation of future cash flow, consisting of return on equity and incentives of Uri-1 Power station or any other power stations of the company for 10 to 15 years in single tranche during FY23.
The future cash flow of the Uri-project will be awarded to the bidder offering lowest discount and highest net present value for the operational project, a senior company official told BQ Prime on condition of anonymity as he is not authorised to speak to media. The money received upfront will be deployed to meet the capital expenditure plan of Rs 2,000 crore for FY23, he said.
The company is also looking at raising Rs 1,500 crore through 10 to 15-year bonds during the second half of the fiscal and expects a coupon of 40 basis points above [similar tenor] Government securities, the official said.
NHPC at present has an installed capacity of 7071.2 MW from 24 hydro power stations including two joint venture projects.
Shares of the company closed 1.88% lower at Rs 33.95 on Wednesday against a flat benchmark Nifty 50.