NHPC shares take center stage: Prime Minister Narendra Modi laid the foundation stone for a monumental 300 MW solar power plant in Bikaner, Rajasthan on February 16, bringing NHPC Ltd shares into the limelight. This strategic initiative is part of NHPC’s engagement in the government’s CPSU Scheme, Phase-II, Tranche-III, with an impressive total investment exceeding Rs 1,732 crore.
Financial Implications
NHPC’s shares responded positively to this pivotal development, closing 0.37% higher at Rs 92.95 on BSE on February 16. The state-owned firm’s robust financial performance saw a high turnover of Rs 173.46 crore, accompanied by 184.77 lakh shares changing hands on BSE. The market’s confidence in NHPC was demonstrated by its outstanding rise in market capitalization to Rs 93,368 crore.
Market Trends and Performance
Despite a year of market fluctuations, NHPC shares demonstrated resilience. The stock reached its record high of Rs 115.85 on February 5 this year, only to experience a 52-week low of Rs 37.80 on February 27, 2023. Analyzing the technicals, the relative strength index (RSI) of the stock stands at 58, signifying a balanced position between overbought and oversold zones.
Project Execution and Environmental Impact
The solar power project is not just a financial milestone for NHPC; it’s a bold environmental endeavor. The electricity generated will flow through the Bikaner-II Inter State Transmission System Substation, producing an estimated 750 million units of green power annually. With a capacity utilization factor (CUF) of 28.50%, this initiative is poised to offset approximately 18,000 million metric tonnes of carbon dioxide emissions over its operational lifespan.
Power Usage Agreement and Strategic Collaborations
A crucial aspect of the project’s success lies in the Power Usage Agreement inked with Punjab State Power Corporation Limited (PSPCL). The competitive tariff of Rs 2.45/unit for 25 years, coupled with Viability Gap Funding (VGF) of Rs 134.70 crore from the Ministry of New & Renewable Energy, adds a layer of financial stability to the venture.