Power Minister R K Singh, the government is thinking about selling the two hydroelectric companies owned by the state-owned NTPC Ltd. to NHPC Ltd. in order to merge them into one larger hydroelectric company. When solar plants are not operating at night, he claimed that one sizable hydroelectric business will assist in meeting the increased demand. Around a quarter of India's peak energy consumption during the day is satisfied by solar energy plants.
"We have a number of hydro PSUs. We are thinking whether these hydro companies can
come together as a hydro large PSU. Then it becomes a specialised hydro company," Power and Renewable Energy Minister Singh said. NTPC, the country's largest power producer, acquired the two hydro companies THDC India Ltd and NEEPCO three years ago for about $1.34 billion under a consolidation plan by the Indian government. The power ministry's proposal to create a single company is aimed at better management and expertise, besides reducing costs and managing related challenges.
In India, it takes decades for hydropower plants to start operating because to objections from environmental and religious organisations. Due in part to protests by various organisations and land permissions, the proportion of hydro power in India's energy has decreased from 49% to 11% over the past fifteen years. After THDCIL and NEEPCO and NHPC merged, the united company would have 20 GW of hydro assets. 12 GW of hydro assets are currently held by the state-owned NHPC.
Other businesses that might be incorporated into NHPC were not specifically mentioned by the minister. "NTPC is more of a thermal energy corporation that is moving quickly into green energy. They have relatively few hydro resources "Said Singh. Thermal, nuclear, or hydroelectric plants are needed to supplement intermittent solar and wind power sources.
