JHPL is part of the 3000 crore Delhi based Jaypee group which is a diversified group engaged in the business of hospitality, cement, infrastructure development and river valley hydrogen power projects.
The promoter Mr. Jaiprakash Gaur has over four decades of experience in the generation of power and is involved in power generation around the country totaling 8000 MW.
Hydropower has the benefits of having no fuel cost during the life of the project as power is made using water, economical and environment friendly. Plus the Hydropower plants can instantaneously start, stop and vary load thereby increasing efficiency in use. However the share of hydropower has declined since the time of independence in India. At that time the share was 37%, which now stands at a low of 25% of the total installed capacity. Now the government has recognised this and has estimated the total hydropower generation capacity in the country at 150000 MW out of which only 27010 MW or 18% is being used. In order to set this right the government has made a 10-year plan to add 50000 MW of hydropower generation capacity in the country.
Currently JHPL is involved in the Baspa II run of the river hydropower project on a build own operate basis at kinnaur in Himachal Pradesh. The Power Purchase Agreement was executed between JHPL and HPSEB in June 1997 for a period of 40 years. The plant is estimated to produce 1213.18 MU of electricity annually and is the largest hydroelectric plant commissioned in the private sector. The plant has generated a saleable energy of 853.79 MU in the six months ended 30 Sep 2004 as against design energy of 780.73 MU. The company had initiated a debt-restructuring program and has been able to bring down the interest cost from 16.65% in 2004 to 10.5% per annum. The company earned a net profit of Rs. 57.91 crores on sales of Rs. 295.31 crores for the period ending July 2003 to March 2004. For the sixth month period ending September 2004 the company made a profit of Rs. 64.01 crore on a sale of Rs. 197.65 crore.
Given the strong background of the promoters, very healthy margins and the stress of the government on the sector the future looks good for the company.
