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SJVN, THDC, NEEPCO oppose merger plan with NHPC

According to reports, the government has proposed amalgamation of four hydro power producers -- NHPC, SJVN, THDC and NEEPCO.

PTI|
Updated: Aug 21, 2014, 08.48 PM IST
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NEW DELHI: State-run SJVN has opposed the proposal to merge THDC, NEEPCO and itself with NHPC, saying such a move is not in national interest and the amalgamation of the hydro power units may result in higher tariff.

In a letter written to the Ministry of Power, the public sector firm has also alleged that the engagement of SBI Caps by NHPC for preparing a concept paper on 'Integration of Central Hydro PSUs in India' has been done without consulting SJVN, THDC and NEEPCO.

"SBI Caps has not taken any inputs from SJVN, THDC and NEEPCO to enable them to understand the problems and pitfalls arising out of such merger," SJVN was quoted as saying in the letter.

The company has also accused NHPC of making a "unilateral attempt" of thrusting its desire for such a proposal as the "only mandatory option".

SJVN, THDC and NEEPCO are of the view that their integration with NHPC "shall neither be national interest nor it will result in accelerated capacity addition," SJVN said, adding that the arrangement is likely to "enhance" the present tariff.

"The concept paper...as prepared by SBI Caps was not discussed by NHPC with any of the CMDs before submitting it to the Ministry of Power," SJVN said.

The company added that certain facts have not been "truly" and "appropriately" reflected in this report.

According to reports, the government has proposed amalgamation of four hydro power producers -- NHPC, SJVN, THDC and NEEPCO.

SJVN has requested the government that the matter should be examined in detail considering the operational reality and facts and circumstances of each company separately.

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