The public sector undertakings (PSUs) under the Ministry of Power have entered into a number of memorandums of understanding (MoUs) with authorities wherein, the emphasis on higher power generation is clearly evident. The MoUs signed have set targets in terms of higher power generation and allied work along with revenue targets for the current fiscal year.
The hydroelectric power generation company, NHPC Limited will have a scope of work in the generation of the target set at 27,500 million units (MUs) as against last year’s target of 26,000 MUs. Revenue targets from operations have been kept at Rs 8,900 crore for the current fiscal year. At the operating level, the company will target operating profit, as a per cent of revenue i.e. at 38 per cent and profit after tax has been kept at 10.50 per cent. The operating profit margin is aimed lower in comparison to the 52 per cent margin, which was achieved in FY20.
Power Grid and Power Finance Corporation (PFC) also signed various MoUs during the past one month. PFC has reportedly been assigned an ambitious revenue target of Rs 36,000 crore. Power Grid entered into an MoU, wherein NHPC Limited will execute turnkey projects in dedicated transmission lines or construction of power supply lines for their ongoing and upcoming generation projects on a consultancy basis. Power Grid has already reported that it operates over 1,63,282 ckm of transmission lines, 248 EHV sub-stations with a transformation capacity of more than 4,09,899 MVA, as of the end of FY20.
On Thursday, the shares of NHPC, PFC, and Power Grid were trading higher by 0.30 per cent, 1.20 per cent and 1.40 per cent, respectively on BSE.