On July 20, 2024, the Indian Renewable Energy Development Agency (IREDA) provided clarifications to the National Stock Exchange (NSE) regarding its recent equity investment in the Nepal-based GMR Upper Karnali Hydro Power Project and Karnali Transmission Company.
Key Points from IREDA’s Clarification:
- Investment Approval: IREDA confirmed receiving an in-principle approval for an equity investment in the GMR Upper Karnali Hydro Power Project. The agency plans to acquire up to a 10% stake in both the hydro power project and the Karnali Transmission Company, which is directly related to the power project. This approval is part of a collaborative effort with SJVN Limited (formerly known as Satluj Jal Vidyut Nigam).
- Financial Commitment: The total investment commitment from IREDA is set at approximately Rs 290 crore. This investment is aimed at supporting the development and construction phases of the hydro power project, which holds significant potential for renewable energy generation in the region.
- Project Status: The GMR Upper Karnali Hydro Power Project is currently under construction, and as such, it has not yet begun operations or generated any revenue. This point was crucial in addressing the NSE’s concerns about the financial health and current performance of the project.
- Strategic Importance: The investment in the Nepal hydropower project aligns with IREDA’s strategic goals of expanding renewable energy infrastructure and fostering cross-border energy cooperation. The project is expected to enhance the renewable energy capacity and provide substantial benefits in terms of clean energy supply once operational.
Stock Market Reaction:
Following the clarification, IREDA’s stock experienced a positive response in the market, with a 5.71% increase in its share price. This uptick reflects the market’s confidence in IREDA’s strategic investments and the potential long-term benefits of the hydropower project.
IREDA’s clarification to the NSE underscores its commitment to transparency and strategic investment in renewable energy projects. The GMR Upper Karnali Hydro Power Project represents a significant step towards enhancing renewable energy capacity in the region and fostering international energy collaboration. Investors and stakeholders will be closely monitoring the project’s progress and its impact on IREDA’s growth trajectory.