State-owned National hydroelectric power corporation (NHPC), country's largest hydro power producer, has slashed its capital expenditure plan for the current five year plan by 31 per cent, according to a report published in Business Standard.

The clearances and law-and-order-related issues have affected its projects' progress, it said.

The company has lowered the spending target for the plan period ending in March 2017 from Rs 29,000 crore to Rs 20,000 crore. While the power ministry, NHPC's parent ministry, had finalised a target of 3,130 Mw of fresh capacity addition, the company expects only 1,702 Mw - 54 per cent of the target - to be commissioned. The company's total income declined 6.1 per cent to Rs 6,299 crore last financial year. Its net profit also slumped, by 15 per cent to Rs 2,348 crore.

NHPC currently operates 17 projects with 5,702 Mw of installed capacity, including 1,520 Mw of joint venture projects. In addition, seven projects, totalling 4,095 Mw, are under various stages of construction.

The projects that are likely to slip from the 12th Plan period include Lower Subansiri and Parbati-II. The former, originally planned to be commissioned in September 2010, is unlikely to come on stream before December 2017. The work at the project site had been halted since December 2011 due to local agitation. Additionally, ten projects, totalling 8,800 Mw capacities, are currently awaiting clearance.

NHPC accounts for around 15 per cent of India's current installed hydro power generating capacity of over 39,000 Mw. Hydro power accounts for less than a fifth of the country' total installed power capacity of 225,000 Mw at present.