NHPC gets ₹250 crore payment under Mega Insurance Policy for Teesta-V power station loss

India’s largest hydropower company, NHPC Ltd on Thursday (January 2) announced the receipt of the second on-account gross payment of ₹250 crore under its Mega Insurance Policy. This payment is related to the business interruption (BI) loss caused by the flash flood at the Teesta-V Power Station (510 MW) on October 4, 2023.

“…it is to inform that NHPC Limited has received 2nd on account gross payment of ₹250.00 Crore under Mega Insurance Policy against the insurance claim of Business Interruption (BI) loss caused due to flash flood occurred on 04.10.2023 at Teesta-V Power Station (510 MW),” NHPC said in a regulatory filing.

Last year in August, a landslide at the Teesta-V Power Station (510 MW) affected parts of the Tail Race Tunnel (TRT), and a severe flash flood in the Teesta Basin in October 2023 led to a complete shutdown of the Teesta-5 power station. Restoration work is still projected to be completed by March 2025.

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NHPC expects to resume power generation from the Teesta-V Project in the third quarter of FY26.

NHPC reported a 41.2% decline in net profit for the second quarter, posting ₹909 crore compared to ₹1,546 crore in the same quarter last year. The drop in profitability comes despite a 4.1% increase in revenue, which reached ₹3,052 crore, up from ₹2,931.3 crore in the corresponding period last year.

The company’s operational revenue in Q1 stood at ₹2,694 crore, indicating a steady upward trend from the previous quarter. The EBITDA for Q2 showed modest growth, rising 1.7% year-on-year to ₹1,799 crore, compared to ₹1,768.4 crore in Q2 FY24. However, margins contracted to 58.9% from 60.3% a year earlier, reflecting some pressure on operational efficiency.

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Shares of NHPCLtd ended at ₹82.45, up by ₹0.51, or 0.62% on the BSE