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.

NHPC Limited disclosed a revision in its Environmental, Social and Governance (ESG) score by S&P Global. The rating agency updated the score to 57 as on August 28, 2026, down from the previous score of 61 awarded in February 2026.

The downgrade stems from the 'Media and Stakeholder Analysis' of the Teesta VI Hydroelectric Project (HEP) incident that occurred on July 20, 2026. NHPC informed stock exchanges about the change in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Score Breakdown

The total ESG score reduction reflects specific declines in two of the three pillars:

The Environmental pillar score remained unchanged despite the overall drop.

Company Response

NHPC has raised its concerns with S&P Global regarding the deduction. The company has requested appropriate justification for the reduction in its ESG score. This disclosure follows an earlier communication dated February 14, 2026.