NHPC Limited disclosed an Environmental, Social, and Governance (ESG) score of 48 assigned by ESG Risk Assessments & Insights Limited. The rating was derived independently from public domain data rather than through direct engagement with the company.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company noted that it did not engage the rating agency for this assessment.

Rating Details

The ESG score is available on the websites of both the Bombay Stock Exchange and the National Stock Exchange of India. The assessment relies solely on information publicly available about NHPC Limited.

Regulatory Compliance

This filing serves as a compliance measure for listed entities to disclose material ESG-related developments. The company emphasized the independent nature of the report to clarify that no proprietary data was shared for the evaluation.

NHPC Limited secured an arbitral award of ₹392.31 crore and €15.36 lakh from BGS-SGS-SOMA, the company disclosed. The Arbitral Tribunal pronounced the award on September 1, 2026, resolving a long-standing litigation matter related to the Subansiri Lower Hydroelectric Project.

Arbitration outcome details

The award pertains to the construction of diversion tunnels, coffer dams, concrete gravity dam, plunge pool, and cut-off wall (Lot SSL-1) of the Subansiri Lower HE project (2000 MW). BGS-SGS-SOMA had originally claimed ₹796.87 crore and €28.76 lakh for the work.

The following table summarises the claim versus the awarded amount:

The awarded sum includes the principal amount plus interest at 10% per annum calculated from September 9, 2021, to August 31, 2026.

Regulatory and financial implications

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, NHPC informed the stock exchanges about the change in the status of this material litigation case. The disclosure was made in continuation of a previous letter dated August 14, 2023.

Crucially, NHPC stated that as per the Central Electricity Regulatory Commission (CERC) Tariff Regulations, 2024, the awarded amount is allowable as project cost. This means the recovery is recoverable through tariff, providing a clear path for monetisation without impacting the company’s immediate cash flow from operations negatively.

What the Numbers Show

The arbitral award represents approximately 49% of the original claimed amount of ₹796.87 crore. While the principal recovery is less than half of the initial claim, the inclusion of interest at 10% over nearly five years underscores the time value of money in prolonged arbitration proceedings. The ability to recover this amount through tariffs ensures that the financial impact is neutralised over the project's life cycle rather than bearing an immediate P&L hit.