When we talk about India’s progress in the renewable energy sector, one of the first names that comes to mind is NHPC Limited. Known as the “hydropower giant of India,” has been at the forefront of developing sustainable and clean energy solutions. In a time when climate change and environmental concerns are shaping government policies, NHPC stands as a symbol of India’s commitment to green growth.
This blog takes a deep dive into NHPC’s journey, achievements, projects, financial performance, and its role in shaping India’s energy future.
1. Introduction
National Hydroelectric Power Corporation Limited was established in 1975 with the aim of developing hydropower projects in India. Over the years, it has evolved into one of the largest hydropower companies in South Asia.
With headquarters in Faridabad, Haryana, plays a critical role in harnessing India’s vast water resources to produce clean electricity. Initially focusing only on hydro projects, the company has now diversified into solar and wind energy, aligning itself with India’s renewable energy goals.
2. Why Hydropower Matters
Hydropower is one of the oldest and most reliable renewable energy sources in the world. For a developing country like India, it offers several advantages:
- Clean and Green: Hydropower produces no greenhouse gas emissions during operation.
- Reliable Base Load Power: Unlike solar and wind, hydro plants can generate power round the clock.
- Water Management Benefits: Dams not only generate electricity but also help in irrigation, flood control, and drinking water supply.
- Long Life Span: Hydroelectric projects, once built, can run efficiently for decades with proper maintenance.
NHPC, being India’s leading hydropower developer, contributes significantly to these benefits.
3. NHPC’s Journey So Far
It was founded in 1975, it started with a modest mandate to plan, promote, and organize the development of hydropower projects. Over time, the company expanded its portfolio.
- First Project: NHPC’s first project was the Loktak Hydroelectric Project in Manipur, with a capacity of 105 MW.
- Expansion: Since then, NHPC has commissioned dozens of hydro projects across India, especially in Himalayan states like Himachal Pradesh, Jammu & Kashmir, Sikkim, and Uttarakhand.
- Diversification: In recent years, NHPC has ventured into solar power parks, wind farms, and hybrid energy projects.
Today, it is not just a hydropower company but a diversified renewable energy powerhouse.
4. Current Installed Capacity
As of 2025, NHPC has an installed capacity of around 7,000 MW from hydro projects, along with additional capacity from solar and wind projects.
Its projects span across states such as:
- Jammu & Kashmir – Dulhasti, Kishanganga
- Himachal Pradesh – Chamera I, II, III
- Arunachal Pradesh – Subansiri (one of India’s largest upcoming hydro projects)
- Sikkim – Teesta Low Dam
- Manipur – Loktak
The company also has joint ventures with state governments and private players, further boosting its portfolio.
5. Major Ongoing and Upcoming Projects
Subansiri Lower Hydroelectric Project on the Assam-Arunachal border is one of the most ambitious hydro projects in India, with a planned capacity of 2,000 MW. Once operational, it will be a game-changer for the North-East region.
Other notable projects include:
- Parbati II Hydroelectric Project (HP)
- Teesta VI Project (Sikkim)
- Solar Projects in Uttar Pradesh, Rajasthan, and Ladakh
These initiatives highlight commitment to meeting India’s growing energy demand sustainably.
6. NHPC and Renewable Energy Transition
While hydro remains its backbone, has taken bold steps into solar and wind power. It has set up solar projects in states like Uttar Pradesh and Rajasthan and is also exploring floating solar power plants on reservoirs.
Floating solar projects are innovative because they:
- Save land space
- Reduce evaporation from reservoirs
- Improve efficiency by keeping panels cooler
This diversification ensures remains future-ready in India’s clean energy transformation.
7. Financial Performance
It is a public sector enterprise (PSU) listed on both NSE and BSE. Investors often consider it a safe and steady stock due to its strong government backing and consistent dividend payout.
- Revenue Sources: Power sales to state distribution companies (DISCOMs) form its primary revenue.
- Profitability: Being in renewable energy, benefits from low fuel costs and long-term Power Purchase Agreements (PPAs).
- Investor Interest: With growing focus on green energy, stock has attracted both retail and institutional investors.
As India pushes for 500 GW renewable capacity by 2030, is expected to play a key role, which strengthens its long-term financial outlook.
8. NHPC’s Role in India’s Energy Goals
India has pledged to achieve Net Zero by 2070 and aims to get 50% of its power capacity from non-fossil fuels by 2030. NHPC directly supports this mission.
- Current Contribution: contributes over 15% of India’s total hydropower generation.
- Future Targets: plans to expand its portfolio to over 20 GW by 2030, with a mix of hydro, solar, and wind energy.
- Regional Balance: Its projects in the North-East and Himalayan regions also promote regional development and employment.
9. Corporate Social Responsibility (CSR)
It is not only focused on generating electricity but also on contributing to society through CSR initiatives.
Some of its CSR activities include:
- Supporting education programs in remote areas
- Providing healthcare facilities and mobile medical units
- Developing infrastructure like roads, water supply, and schools near project areas
- Promoting environmental sustainability through afforestation and wildlife protection programs
This makes NHPC a socially responsible PSU with a human touch.
10. Challenges Faced by NHPC
While NHPC has achieved remarkable success, it also faces challenges:
- Environmental Clearances: Hydro projects often face delays due to environmental and forest approvals.
- Rehabilitation Issues: Large dams displace local communities, leading to social resistance.
- Geological Risks: Himalayan terrain poses risks like landslides and earthquakes.
- Financial Stress on DISCOMs: Power distribution companies sometimes delay payments, affecting NHPC’s cash flow.
Despite these challenges, NHPC continues to push forward with innovation and strategic planning.
11. Future Roadmap
NHPC’s roadmap aligns with India’s clean energy vision. Its plans include:
- Expanding Hydro Portfolio: Completing large-scale projects like Subansiri and Parbati.
- Scaling Solar and Wind: Developing gigawatt-scale solar parks and hybrid projects.
- Green Hydrogen Projects: Exploring hydrogen as the next frontier in clean energy.
- International Collaborations: Partnering with global renewable companies to adopt best practices.
By 2030, NHPC aims to be not just India’s hydropower leader, but a global renewable energy player.
12. Why NHPC Matters for Investors and Citizens
For investors, NHPC represents a stable and growth-oriented PSU in the renewable space. For citizens, it symbolizes clean energy access, regional development, and sustainable progress.
Every unit of power generated by NHPC reduces India’s reliance on coal and cuts down carbon emissions. This directly contributes to improving air quality and combating climate change.
13. Conclusion
From its humble beginnings in 1975 to becoming India’s largest hydropower company, NHPC Limited has come a long way. It has built dams in some of the most challenging terrains, powered millions of homes, and contributed significantly to India’s renewable energy mission.
As the country transitions towards a green future, NHPC will remain a cornerstone of this journey—balancing energy needs with environmental sustainability. With its ongoing and upcoming projects, diversification into solar and wind, and strong government backing, NHPC is well-positioned to lead India’s clean energy revolution.
In short, NHPC is not just producing electricity—it is lighting up India’s future sustainably.
