State-run power major NTPC Ltd. on Monday said it has signed an agreement with Power Grid Corporation of India Ltd. to form a 50:50 joint venture to enter the electricity distribution business and other related activity.
The NTPC-Power Grid joint venture will be formed “with an objective to undertake the business for distribution of electricity in distribution circles in various states and union territories of India and other related activities”, NTPC said in a BSE filing.
According to the statement, the joint venture company will be incorporated only after obtaining necessary approvals from the government. The two firms would set up the joint venture firm under the name of 'National Distribution Company'.
On Monday, NTPC shares rose 0.71 percent to Rs 135.50 apiece on the BSE while those of Power Grid fell 0.50 percent to Rs 198.95 per share. The benchmark Sensex ended the day 0.18 percent lower at 39,122.96 points.
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