NHPC's JV Board Greenlights Transfer Of 1.31 Crore Shares To Power Grid
Following the transaction, NHPC's equity holding in NHPTL has reduced to 12.50% from 20%. Consequently, NHPTL is no longer an associate company of NHPC.
NHPC on Tuesday announced that the board of its joint venture, National High Power Test Laboratory Pvt., has sanctioned the transfer of 1.31 crore equity shares to Power Grid Corp.
The NHPTL board of directors in a meeting on Monday sanctioned the share transfer from NHPC to Power Grid, adhering to the supplementary JV agreement between the JV partners of NHPTL, the company said in an exchange filing.
Following the transaction, NHPC's equity holding in NHPTL has reduced to 12.50% from 20%. Consequently, NHPTL is no longer an associate company of NHPC.
In April this year, state-owned Power Grid inked a pact to infuse funds and take a 50% stake in crisis-hit NHPTL.
A supplementary joint venture agreement in this regard was signed on April 23 by shareholders of NHPTL.
NHPTL is a joint venture of NTPC, NHPC, Damodar Valley Corp. and Central Power Research Institute.
The funds will be infused subject to the approval of the management of JV parties.
In a meeting held on Sept. 15, 2022, a revival plan was agreed upon with the Ministry of Power, in view of the financial crisis of NHPTL and for the long-term sustenance of this important testing facility for high voltage transformers in the country.
The revival plan comprises equity transactions between shareholders with an outcome of revised equity holding of Power Grid in NHPTL as 50%, and the remaining 50% of equity to be held equally, that is 12.5% each by the other four JV partners.
Upon infusion of equity by Power Grid in NHPTL, the board composition will be revised to two directors, including the chairman of NHPTL from Power Grid and one nominee director by other promoters on a rotation basis.
The objective of the JV is to establish an online High Power Short Circuit Test Facility, which will be a fully independent professionally managed stand-alone testing facility in India.
This will provide a full range of short circuit testing for the electrical equipment manufacturing industry and power supply utilities in conformance with Indian and international standards.
(With text inputs from PTI)
