NHPC Limited has released its Secretarial Compliance Report for the financial year ended March 31, 2026. The report confirms that the company has largely adhered to mandatory governance and operational standards throughout the review period. While the company faced challenges regarding the appointment of independent directors due to government nomination processes, it has taken consistent corrective actions to realign its board and committee compositions with required governance benchmarks.
Overview of Compliance
The Secretarial Compliance Report for the fiscal year ending March 31, 2026, indicates that NHPC Limited maintains a strong framework for corporate governance. The company is currently in compliance with most operational standards, including the maintenance of a functional website, timely adoption of corporate policies, and the preservation of required documentation. Furthermore, there were no disqualifications regarding the company’s directors during the review period.
Addressing Board Composition Challenges
The report highlights that the primary area of non-compliance pertained to the composition of the Board of Directors, Audit Committee, and Nomination & Remuneration Committee during certain quarters of the fiscal year. This was primarily due to delays in the appointment of the requisite number of independent directors, including a woman independent director, which is a process dependent on government nominations.
Corrective Measures and Government Liaison
NHPC Limited has actively pursued the filling of these vacancies with the Ministry of Power, Government of India. The company consistently submitted letters throughout 2024, 2025, and 2026 to ensure compliance. Following the appointment of new directors by the Ministry on April 17, 2025, the company successfully reconstituted its committees to meet all regulatory requirements. In several instances, after reviewing the company’s justifications for these unavoidable administrative delays, the relevant authorities waived the fines previously imposed for those specific quarters.
Source: BSE
