NHPC Board Approves ₹8,000 Crore Borrowing Plan to Fuel Aggressive 59% Capacity Expansion

In a decisive move to finance its ambitious 59% capacity growth target, the Board of Directors of NHPC Limited, India’s premier Navratna hydropower utility, approved a borrowing plan of up to ₹8,000 crore for the 2026–27 financial year. The approval was granted during a board meeting on Wednesday, March 25, 2026, held between 5:15 PM and 6:45 PM. In an official regulatory filing made shortly thereafter to the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), the company indicated that this capital infusion is essential to scale its installed capacity from 8.2 GW to nearly 13 GW by the end of FY27, supporting its mission to anchor India’s transition to a high-RES (Renewable Energy Sources) grid.

Borrowing Framework and Financial Instruments

The board has established a robust framework to tap capital markets, leveraging its premier credit standing—reaffirmed by ICRA as [ICRA]AAA(Stable)—to secure favorable pricing. The capital raise will utilize the following mechanisms:

• Total Limit: Up to ₹8,000 crore for the financial year 2026–27.
• Primary Instruments: Secured or unsecured, redeemable, taxable, non-cumulative, non-convertible corporate bonds.
• Issuance Method: Capital will be raised in one or more tranches on a private placement basis.
• Alternative Avenues: The plan includes provisions for term loans and External Commercial Borrowings (ECB), contingent on global interest rate cycles and market liquidity.

Strategic Project Pipeline

The ₹8,000 crore fundraise represents over 53% of the company’s projected ₹15,000 crore capital expenditure for FY 2026-27. This liquidity is earmarked for a massive execution pipeline, including 14 projects (9,204 MW) currently under construction.

• Growth Benchmarks: Targets include adding 2,100 MW by March 2026 and an additional 2,744 MW during FY 2026-27.
• Flagship Hydroelectric Projects:
  • Subansiri Lower (2,000 MW) in Arunachal Pradesh/Assam: Following the recent commissioning of two units, full completion is slated for December 2026.
  • Kamala (1,720 MW) in Arunachal Pradesh: Development is accelerating following formal concurrence.
  • Rangit-IV (120 MW) in Sikkim: Scheduled for FY 2026-27 commissioning.
  • Pakal Dul (1,000 MW) & Kiru (624 MW) in Jammu & Kashmir: Both central to the FY 2026-27 expansion phase.
• Diversification and Green Hydrogen:
  • Pumped Storage (PSP): A 2,000 MW target for 2026 to provide critical grid balancing and storage services.
  • Solar Strategy: Building on the success of the recently fully commissioned 300 MW Karnisar project, the company is managing six solar projects totaling 1,190 MW.
  • Green Hydrogen: A long-term commitment to produce 500 MT/year of Green Hydrogen by 2030, backed by a dedicated ₹450 crore investment plan.

Financial Performance Context

NHPC’s entry into the debt market is supported by high operating efficiencies and a 50% EBITDA margin. While the company manages exposure to weak state discoms in Jammu & Kashmir and Uttar Pradesh, collection efficiency has remained satisfactory under the Late Payment Surcharge (LPS) scheme, mitigating counterparty risks for bondholders.

NHPC 9M FY’26 Financial Snapshot

Regulatory Compliance and Disclosure

This strategic disclosure follows an initial notification sent to the exchanges on March 18, 2026. The filing is made in strict compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As India’s largest hydropower generator, NHPC’s aggressive capital mobilization and project execution remain pivotal to the national mandate of achieving 500 GW of non-fossil fuel capacity by 2030. The company’s pivot toward pumped storage and green hydrogen further cements its role as a diversified clean energy major.