New Delhi April 14: The long-delayed initial public offer of National Hydroelectric Power Corporation(NHPC) -- the country's largest hydro power utility -- is set to hit the market by mid-August. Prior to the listing -- which involves an issue of new shares as well as a divestment by the government -- it will be granted a mini-ratna status (which gives financial and operational autonomy), said minister of state for power Jairam Ramesh.

"The IPO is extrememly crucial for NHPC's success. It has been delayed by a year already, but there would be no further delay," said Ramesh, adding that three independent directors would soon be appointed to the board. The lack of independent directors on the board was the main reason for the delay in the IPO.

Terming NHPC as a "sleeping giant", he said that the government's attempt was to give the company a new lease of life. It would play a critical role in increasing the share of hydro power in India's overall power basket from 25 per cent currently to the targeted level of 40 per cent in the next 20 years.

He detailed a host of projects which the company will be taking up shortly. NHPC will soon be forming a 51:49 joint venture -- "its first joint venture with a commercial organisation," according to Ramesh -- with the Jammu & Kashmir Power Development Corporation(JKPDC).

"The MoU for the joint venture will be signed next week," he said. The venture would take up three run-of-the-river (RoR) projects totalling a capacity of 2120 Mw.

Ramesh also said that he would expedite the necessary approvals for the 330-Mw Kishanganga project which has seen a cost escalation from Rs 2,200 crore to Rs 3,700 crore. The project had received cabinet clearance in June 2007 but has seen a cost escalation due to "higher risk premium."

The country has huge hydro potential of 150,000 Mw of which only a fifth has been realised. The North-East region has a potential of 63,000 Mw while Arunachal Pradesh alone has a potential of 50,000 Mw "of which only 424 Mw has been realised and 2,600 Mw is under development," said Ramesh.