Synopsis: A state-owned hydropower developer has signed a Memorandum of Agreement with the Government of Arunachal Pradesh for the development of the 3,097 MW Etalin Hydroelectric Project on the Dri and Tangon rivers in the Dibang Basin. The project will be executed under the Build, Own, Operate and Transfer (BOOT) model, with a 40-year lease period commencing from the Commercial Operation Date.
India’s hydropower ambitions are getting a significant boost, and one of the country’s most-watched clean energy names has just locked in a deal that could redefine its long-term growth story. The state-owned Navratna PSU has signed a key agreement with the Arunachal Pradesh government for one of the largest greenfield hydro projects in the country’s pipeline.
With a market cap of Rs.75,087 crore, shares of NHPC Limited were trading at Rs.75 per share, with a 52-week range of Rs.89.75 to Rs.71.62, with a trailing P/E of approximately 20x.
Order Update
NHPC Limited has signed a Memorandum of Agreement (MoA) with the Government of Arunachal Pradesh on June 16, 2026, for the development of the Etalin Hydroelectric Project (Etalin HEP), a 3,097 MW run-of-river hydropower project to be constructed on the Dri and Tangon rivers in the Dibang Basin of Arunachal Pradesh. The agreement marks a significant step toward harnessing the state’s vast hydroelectric potential and strengthening India’s clean energy capacity.
Under the MoA, the state government has granted permission to undertake preliminary investigations for the preparation of the Pre-Feasibility Report (PFR), detailed investigations for the Detailed Project Report (DPR), as well as financing, development, commissioning, operation, and maintenance of the project. The project will be executed on a Build, Own, Operate and Transfer (BOOT) basis, with a lease period of 40 years from the Commercial Operation Date (COD).
Developed in accordance with the Arunachal Pradesh Hydro Power Policy, 2008, the project is expected to contribute significantly to renewable energy generation, regional infrastructure development, and long-term economic growth in the state.
Financial Snapshot & Business Overview
NHPC Limited is India’s largest hydropower generator by installed capacity, a Navratna PSU incorporated in 1975 and present across 15 states and 2 Union Territories. As of May 2026, the company operates 31 power stations with a consolidated installed capacity of 9,333 MW comprising 8,771 MW hydro and 562 MW renewables and holds a 16.57% share of India’s installed hydro capacity.
On a consolidated basis for FY26, NHPC reported revenue from operations of Rs.11,615 crore, up from Rs.10,380 crore in FY25. Net profit attributable to the parent stood at Rs.3,766 crore for FY26, compared to Rs.3,007 crore in FY25. EBITDA margin was healthy at 59%, with the company targeting a consolidated capex of Rs.15,000 crore in FY27.
The Etalin MoA adds a 3,097 MW project to an already substantial pipeline of 9,204 MW under construction and 10,263 MW awaiting clearances but with no investment approval yet in hand, investors will be watching execution pace and project cost finalisation closely before pricing in the full upside.
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