NHPC Limited will seek its shareholders’ approval to raise borrowing limit by Rs 100 billion to Rs 400 billion in the annual general meeting to be held on September 29, 2021.
NHPC’s estimated debt requirement for both ongoing projects and future projects up to 2031 as per capex requirements will be around Rs 500 billion. This will be more than the company’s paid-up share capital, free reserves, and securities premium. NHPC is rapidly expanding its capacity by developing projects from a variety of energy sources, including hydro, renewables, and others. As per CERC guidelines, these projects will be financed in a 70:30 debt-to-equity ratio.