Power sector is on the cusp of a turnaround and we can see double-digit demand growth in the second half of current fiscal, according to a CLSA report.

To get a sense of how the power sector is performing and its prospects, CNBC-TV18 spoke with Mahesh Kumar Mittal, director (Finance) & CFO at NHPC.

"As of now hydro power is in good demand and the tariffs are reasonable. The average cost of tariff is around 3.40/kwh. The power is entirely being sold in market in long-term PPAs and so do not envisage any tariff cuts," Mittal said on Wednesday.

When asked if there were any plans to merge NHPC, NTPC and SJVN, he said, "There was no such information."

Talking about the power demand, Mittal said, "With regards to hydro power, the power generation has been steady with a growth of 9 percent and expect the growth to continue."

Talking about the buyback plans, he said, "Our company is highly under-leveraged and because we have cash surplus and the government guidelines say if we have certain amount of cash surplus then we are suppose to do buyback."

NHPC is under leveraged with a debt to equity ratio of 0.6:1 and a debt of over Rs 16,000 crore.

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