NHPTL Signed Supplementary JV Agreement 3 with Public shareholders

According to a filing made by the company, the supplementary Joint Venture Agreement -3 has been signed by shareholders of NHPTL viz. NTPC, NHPC, POWERGRID, DVC & CPRI. This agreement is based on the agreed revival plan earlier reached upon within the parties.

The revival plan comprises equity transactions between shareholders with an outcome of revised equity holding of POWERGRID in NHPTL as 50% and remaining fifty (50%) percent of equity to be held equally i.e 12.5 % by the other four JV partners.

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Further as per the JVA-3, the revised Board structure of NHPTL shall be two Directors (Including Chairman, NHPTL) from POWERGRID and one nominee Director by other Promoters on rotation basis.

The signatories of the agreement are NTPC Limited, NHPC Limited, Damodar Valley Corporation, Central Power Research Institute and National High Power Test Laboratory Private Limited (NHPTL).

The Purpose of entering into the agreement is 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, Revival plan has been agreed in the meeting held on 15 September 2022 with the Ministry of Power, GoI wherein it was agreed that POWERGRID shall infuse funds subject to the approval of respective managements of JV parties.

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The Parties agreed that paid up equity share capital shall be re-structured as per the Revival Plan of NHPTL agreed. Upon infusion of equity by POWERGRID in NHPTL, the revised equity holding of POWERGRID in NHPTL shall become 50%, and the remaining fifty (50%) per cent of equity shall be held equally by the other four JV partners (i.e., 12.5% each of NTPC, NHPC, DVC & CPRI).

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