NHPC Limited has disclosed significant developments involving its subsidiary companies, including a substantial income tax demand and changes in shareholding structure. The company made these disclosures under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Income Tax Demand on NHDC Limited

NHDC Limited, a subsidiary of NHPC Limited, received an income tax demand notice of Rs 231.78 crore from the Income Tax Department on March 27, 2026. The demand pertains to Assessment Year 2024-25, with the Faceless Assessment Unit issuing the assessment order on March 26, 2026.

Company's Response Strategy

NHDC has identified a computational error in the assessment order. The company had considered eligible MAT (Minimum Alternate Tax) Credit amounting to Rs 184.37 crore while computing income tax, which was not factored in by the assessing officer's computation sheet.

To address this discrepancy, NHDC plans to initiate the following actions:

• File an application under section 154 for rectification of mistake in computation of income tax liability
• Seek consideration of eligible MAT Credit of Rs 184.37 crore from earlier years
• Continue regular claims for MAT Credit under section 115JAA, which have been consistently allowed by Income Tax authorities

Expected Financial Impact

NHPC management expects minimal impact on the company's financial position and operations. The company has historically been successful in claiming MAT Credit under section 115JAA, with regular approvals from Income Tax authorities. Based on this track record and the rectification process, the company anticipates no significant impact on its financial, operational, or other business activities.

RHPCL Shareholding Enhancement

In a separate development, NHPC's shareholding in Ratle Hydroelectric Power Corporation Limited (RHPCL) has increased from 49.72% to 51%. This change occurred following the release of matching equity contribution by NHPC Limited and subsequent allotment of equity shares.

This increase in shareholding strengthens NHPC's control over RHPCL, moving from a minority to a majority stake in the subsidiary company. The enhanced shareholding follows NHPC's earlier communication dated December 29, 2025, regarding this equity restructuring process.

NHPC Limited has formalized a major hydroelectric development initiative by signing an implementation agreement with Jammu & Kashmir State Power Development Corporation Limited (JKSPDCL). The agreement, executed on March 27, 2026, in Jammu, encompasses two significant hydroelectric projects with a combined capacity of 500 MW in the Union Territory of Jammu & Kashmir.

Project Details and Specifications

The implementation agreement covers two distinct hydroelectric projects that will strengthen the region's renewable energy infrastructure:

Development Structure and Timeline

NHPC will develop both projects under the Build-Own-Operate-Transfer (BOOT) model, which provides the company with comprehensive control over the project lifecycle. The BOOT arrangement allows NHPC to construct, own, and operate the facilities before eventually transferring them to the designated authority.

Strategic Partnership Framework

The collaboration between NHPC Limited and Jammu & Kashmir State Power Development Corporation Limited represents a significant public sector partnership in the hydroelectric sector. This agreement follows NHPC's earlier communication dated February 20, 2026, indicating the systematic progression of project planning and execution phases.

Regulatory Compliance and Disclosure

The implementation agreement signing has been disclosed in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulatory framework ensures transparent communication of material developments to stakeholders and market participants. The formal disclosure demonstrates NHPC's commitment to maintaining proper corporate governance standards and keeping investors informed about significant business developments.

Regional Impact and Infrastructure Development

The 500 MW combined capacity from both Uri-I Stage-II and Dulhasti Stage-II projects will contribute substantially to the hydroelectric power generation capabilities in Jammu & Kashmir. These projects represent NHPC's continued focus on expanding renewable energy infrastructure in strategically important regions, leveraging the natural water resources available in the Union Territory for sustainable power generation.