NHPTL board okays transfer of NHPC's 1.31 cr shares to Power Grid

NewsDrum Desk
New Update

New Delhi, Jun 11 (PTI) Hydropower giant NHPC on Tuesday said the board of its joint venture National High Power Test Laboratory Pvt Ltd (NHPTL) has approved a proposal to transfer its 1.31 crore equity shares to Power Grid Corporation.

"Post-transaction equity holding of NHPC in NHPTL becomes 12.50 per cent from 20 per cent. Accordingly, NHPTL ceases to be an associate company of NHPC Ltd," a regulatory filing said.

According to the filing, the board of directors of NHPTL in its meeting held on Monday approved the transfer of 1,31,63,750 shares from NHPC to Power Grid Corporation of India Ltd, in line with the supplementary JV agreement signed between JV partners of NHPTL.

In April this year, state-owned Power Grid Corporation inked a pact to infuse funds and take a 50 per cent stake in crisis-hit NHPTL.

A supplementary joint venture agreement in this regard was signed on April 23, 2024, by shareholders of NHPTL.

NHPTL is a joint venture of NTPC, NHPC, DVC (Damodar Vally Corporation) and CPRI (Central Power Research Institute).

The funds will be infused subject to the approval of the management of JV parties.

In a meeting held on September 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 POWERGRID in NHPTL as 50 per cent and the remaining 50 per cent of equity to be held equally, that is, 12.5 per cent 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 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. PTI KKS KKS SHW