Power Grid to acquire 50% stake in NHPTL

25 Apr 2024 , 10:45 AM

The state-owned Power Grid Corporation announced on Tuesday that it has signed an agreement to inject finances and acquire a 50% stake in the crisis-hit National High Power Test Laboratory Pvt Ltd (NHPTL). An additional joint venture agreement in this regard was signed on April 23, 2024, by NHPTL shareholders, according to regulatory filings.

NHPTL is a joint venture between NTPC, NHPC, POWERGRID, DVC, and CPRI.

According to the filing, the money will be infused with the agreement of the management of the joint venture parties NTPC, NHPC, DVC (Damodar Vally Corporation), and CPRI (Central Power Research Institute).

In a meeting conducted on September 15, 2022, a revival plan was agreed upon with the Ministry of Power in light of NHPTL’s financial crisis and to ensure the long-term viability of the country’s significant high-voltage transformer testing facility.

The turnaround plan includes equity transactions amongst shareholders, with the result of POWERGRID’s revised ownership holding in NHPTL being 50%, and the other 50% of equity to be owned equally, that is, 12.5% each by the other four JV partners.

The board composition will be updated to two directors, including the chairman of NHPTL from Power Grid, and one nominee director by other promoters on a rotational basis, according to the filing.

The aim of the joint venture is to establish an independent and professionally operated online High Power Short Circuit Test Facility in India. This facility will offer thorough short circuit testing services for the electrical equipment manufacturing industry and power supply utilities, adhering to both Indian and international standards.

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