State-owned Power Grid Corporation on Tuesday said it has inked a pact to infuse funds and take a 50% stake in crisis-hit National High Power Test Laboratory Pvt Ltd.
A supplementary joint venture agreement in this regard was signed on April 23, 2024, by shareholders of NHPTL, according to a regulatory filing.
NHPTL is a joint venture of NTPC, NHPC, POWERGRID, DVC & CPRI.
The funds will be infused subject to the approval of the management of JV parties - NTPC, NHPC, Damodar Vally Corporation and Central Power Research Institute, the filing said.
In a meeting held on Sept. 15, 2022, a revival plan was agreed 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, it added.
The revival plan comprises equity transactions between shareholders with an outcome of revised equity holding of POWERGRID in NHPTL as 50% and the remaining 50% of equity to be held equally, that is, 12.5% 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 filing said.
The objective of JV is to establish an on-line 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.
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