India’s 2133MW National Hydroelectric Power Corporation (NHPC) could become a subsidiary of the federal thermal power generator, National Thermal Power Corporation (NTPC).

The Indian government feels that the merger would provide a ‘win-win’ scenario for all parties concerned. It would give NTPC, whose park is now 18,000MW, a back door entry to the domestic hydroelectric sector, into which it wants to diversify. NHPC, which is currently constructing three new hydro projects (740MW) and developing four more (1700MW), would benefit from NTPC’s considerable funds and leveraging ability if it became a subsidiary of the corporation.

NHPC officials wish to retain their independence and have threatened strike action if the proposal is pushed forward.