NHPC eyes raising another ₹2,000 cr via asset securitization in FY26

Subscribe to enjoy similar stories. New Delhi: NHPC Ltd is considering raising about ₹2,000 crore through the securitization of assets in the upcoming financial year, according to two people in the know, as the state-run hydropower major seeks to raise funds for expansion.

India’s largest hydropower company, however, has not yet finalized the assets to be securitized and discussions are on, the people said on the condition of anonymity. The company didn’t respond to queries on the target for FY26.

However, in response to a query from Mint, an NHPC spokesperson said: “For FY25, it is informed that the company has achieved the monetization target of ₹2,000 crore by securitization of free cash flow (return on equity) of Dulhasti Power Station, UT of Jammu & Kashmir, for next 8 years with total proceeds of ₹2,348.45 crore." In FY24, the hydropower major monetized the return on equity of its Kishanganga Power Station in J&K for eight years. Read more: US market uncertainty weighs heavy on Waaree Energies Securitization entails converting an illiquid asset or a group of assets or their expected future cash flows into investable securities, on which investors are paid interest and principal.

By value, the power sector accounts for 7% of the assets on offer under the Union government’s national monetization pipeline. It includes power generation assets totalling 6 gigawatt (GW) of hydropower and renewable energy assets accounting for ₹39,832 crore, and power transmission assets accounting for as much as ₹45,200 crore.

For NHPC, a ‘Navratna’, that’s to fund the expansion of its hydropower, pumped storage, and solar power projects. Once the asset for securitization of returns is finalized for the fiscal, NHPC will seek bids from