NHPTL Signs JV Agreement To Infuse Funds To Six Parties

Highlights :

  • This agreement was signed with an outcome of revised equity holding of POWERGRID in NHPT Limited as 50% and remaining 50% of equity to be held equally i.e., 12.5 % by the other four Joint Venture (JV) partners.
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A recent joint venture (JV) agreement was signed between National High Power Test Laboratory Pvt. Ltd., (NHPTL) viz. National Thermal Power Corporation (NTPC), National Hydroelectric Power Corporation (NHPC), POWERGRID, Damodar Valley Corporation (DVC) and Central Power Research Institute (CPRI) as a revival plan which comprised of equity transactions between shareholders.

This agreement was based on the agreed revival plan earlier reached upon within the parties. This agreement was signed with an outcome of revised equity holding of POWERGRID in NHPT Limited as 50% and remaining 50% of equity to be held equally i.e., 12.5 % by the other four Joint Venture (JV) partners.

In view of the financial crisis of National High Power Test Laboratory (NHPTL) and for long term sustenance of this important testing facility for high voltage transformers in the country, revival plan was agreed in the meeting held on 15th September 2022 with Ministry of Power, GoI. Under the agreement, it was agreed that POWERGRID will infuse funds subject to approval of respective managements of JV parties. The parties agreed that paid up equity share capital shall be re-structured as per the Revival Plan of NHPTL agreed.

Further as per the joint venture agreement (JVA)-3, the revised board structure of NHPTL will include two Directors (Including chairman, NHPTL) from POWERGRID and one nominee Director by other Promoters on rotation basis. The parties involved are NTPC Limited, NHPC Limited, Damodar Valley Corporation, Central Power Research Institute and National High Power Test Laboratory Private Limited (NHPTL).

Upon infusion of equity by POWERGRID in NHPTL, the revised equity holding of POWERGRID in NHPTL is expected to become 50%, and remaining 50% percent of equity is to be held equally by the other four JV partners (i.e., 12.5% each of NTPC, NHPC, DVC & CPRI). Further, board composition shall be revised to two Directors (Including Chairman, NHPTL) from POWERGRID and one nominee Director by other Promoters on rotation basis.

Upon infusion of equity by POWERGRID in NHPTL, the revised equity holding of POWERGRID in NHPTL is expected to become 50% and remaining fifty (50%) percent of equity shall be held equally by the other four JV partners (i.e., 12.5% each of NTPC, NHPC, DVC & CPRI). Upon infusion of equity by POWERGRID in NHPTL, board composition is to be revised to two directors (including chairman, NHPTL) from POWERGRID and one nominee director by other promoters on rotation basis.

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