Hydropower mega-merger of NHPC, two others put on hold

The government has deferred an ambitious plan to merge three state-run hydropower companies into one, two people aware of the matter said.

- Rituraj Baruah

NHPC Ltd had made a proposal to the power ministry recently to merge THDC India Ltd and North Eastern Electric Power Corp. Ltd (Neepco) with itself, the people said on condition of anonymity.

The plan was to bring together their diverse experience to boost hydropower and provide uninterrupted electricity when solar power is unavailable. NHPC has experience working in remote areas, THDC has expertise in building large projects, and Neepco is focused on the north-eastern region.

"NHPC had submitted its report proposing the merger and the matter was discussed in the ministry. The ministry also has to take clearance from Dipam (Department of Investment and Public Asset Management), which had taken a decision a few years ago to transfer shares of THDC and Neepco to NTPC. To reverse this decision now would be difficult. So, for now, it’s on hold," one of the two people cited above said.