In a landmark move to bolster Delhi’s clean energy supply, Jal Power Corporation Limited (JPCL)—a wholly owned subsidiary of NHPC—signed a robust 40-year Power Purchase Agreement (PPA) with two major Delhi Discoms, BRPL and BYPL, on June 30, 2025, in Faridabad.
The deal, executed in the presence of senior officials from NHPC, JPCL, and Delhi Distribution Companies, secures the long-term use of power generated from the historic 120 MW Rangit-IV Hydroelectric Project (HEP) in Sikkim.
What the Agreement Means
- Duration & Offtake: The PPA ensures uninterrupted power supply from Rangit-IV HEP to Delhi’s distribution networks for four decades.
- Renewable Energy Integration: This agreement enhances Delhi’s mix of sustainable power sources, complementing its renewable energy goals.
- Strategic Utility: The long-term nature of the PPA aligns with India’s shift towards hydropower-backed dispatchable generation to support grid stability and energy transition.
Also Read: NHPC Partners with JSW Energy to Secure 300 MW Solar-Wind Hybrid PPA
Rangit-IV HEP: A Brief Overview
- Capacity: 120 MW (3 units × 40 MW)
- Ownership: Developed by JPCL, acquired by NHPC under the Corporate Insolvency Resolution Process
- Expected Commercial Operation: December 2025, with a revised project cost of ₹1,828.11 crore
- Project Timeline: Initially instituted in 2005 under a build–own–operate–transfer (BOOT) structure
Why This PPA is Crucial
The 40-year PPA with BRPL and BYPL signals confidence in the Rangit-IV HEP’s reliability and NHPC’s execution capability. Long-term agreements of this nature provide revenue certainty, support financial closure of large infrastructure projects, and offer price stability to consumers. It also highlights how hydropower is poised to play a meaningful role in India’s renewable energy future.
About NHPC
NHPC Limited, formerly known as National Hydroelectric Power Corporation, is India’s premier hydropower company under the Ministry of Power. Established in 1975, NHPC has diversified into solar and wind energy and plays a crucial role in the country’s clean energy transition.
Also Read: NHPC Awards ₹199 Cr Hydro-Mechanical Contract to Om Infra for 2880 MW Dibang Project
