NHPC Subsidiary Faces Tax Demand as Parent Raises Stake in Ratle Hydro Project

NHPC Limited ( (IN:NHPC) ) has provided an announcement.

NHDC Limited, a subsidiary of NHPC Limited, has received an income tax demand notice of Rs 231.78 crore for assessment year 2024-25 from the Income Tax Department’s Faceless Assessment Unit. The company says the demand arises from non-consideration of eligible MAT credit of Rs 184.37 crore by the assessing officer and will seek rectification under Section 154, stating it expects no material impact on its financials, operations or activities.

Separately, NHPC’s shareholding and voting rights in Ratle Hydroelectric Power Corporation Limited have increased from 49.72% to 51%, following a matching equity contribution and fresh share allotment. The move converts Ratle into a majority-controlled subsidiary, strengthening NHPC’s strategic control over this key hydroelectric asset and potentially enhancing its long-term influence in India’s hydropower expansion.

The tax dispute indicates a technical disagreement over MAT credit treatment rather than a change in underlying profitability, with NHDC noting that similar MAT credits have historically been allowed by tax authorities. At the same time, the Ratle stake hike underscores NHPC’s continued push to consolidate its hydro portfolio, which could support future earnings visibility and reinforce its position as a leading state-backed hydropower producer.

More about NHPC Limited

NHPC Limited is an Indian government-owned enterprise in the power sector, primarily focused on developing, owning and operating hydroelectric projects through itself and subsidiaries. The company plays a key role in expanding renewable and hydro-based generation capacity in India, with listed shares on both BSE and NSE and a portfolio of strategic hydro ventures across the country.

Through subsidiaries such as NHDC Limited and Ratle Hydroelectric Power Corporation Limited, NHPC is deepening its presence in hydropower generation and project development. Its growing equity stakes in key joint ventures underline a strategy of consolidating control over critical hydro assets while maintaining operational and financial stability within the regulated Indian power market.

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