NHPC Signs Supplementary Agreement with JV Partners of NHPTL

NHPC Limited has announced the signing of a Supplementary Joint Venture (JV) Agreement with the JV partners of National High Power Test Laboratory Pvt. Ltd. (NHPTL). The JV partners include NTPC, POWERGRID, DVC, CPRI, and NHPTL.

NHPC disclosed that NHPTL, an unlisted company, recorded a total revenue of INR 2023.11 lakh as of March 31, 2023, while its net worth stood at a negative value of INR 18953.15 lakh during the same period. Currently, NHPC holds a 20 percent share in NHPTL.

According to the terms of the agreement, NHPC will sell 1,31,63,750 shares to PowerGrid Corporation of India Ltd (PGCIL) at a notional total consideration of INR 1. PGCIL, an existing promoter of NHPTL, is a Schedule ‘A’ and ‘Maharatna’ Public Sector Enterprise under the Ministry of Power, renowned for its crucial role in bulk power transmission across India.

Following this transaction, the equity shareholding of PowerGrid in NHPTL will rise to 50 percent, with the remaining 50 percent being equally distributed among the other four parties. NHPC, NTPC, DVC, and CPRI will each hold a 12.5 percent stake in NHPTL. Prior to this agreement, each promoter held a 20 percent equity stake in NHPTL.

The agreement signifies a strategic move by NHPC to optimize its stake in NHPTL while further strengthening its collaboration with PGCIL. This development underscores NHPC's commitment to fostering partnerships and leveraging synergies within the power sector to drive sustainable growth and innovation.

The transaction is not expected to have any impact on NHPC Limited.