NTPC Ltd enters in to JV with NPCIL to Advance Nuclear Energy Initiatives

Power Stock, NTPC Limited has officially disclosed through the stock exchanges that the company has signed a Supplementary Joint Venture Agreement-2 (SJVA-2) with the Nuclear Power Corporation of India Limited (NPCIL).

This agreement, which builds upon the existing Joint Venture Agreement dated April 27, 2010, marks a strategic restructuring of their joint venture company, Anushakti Vidhyut Nigam Limited (ASHVINI).

The amendments introduced under SJVA-2 include a redefined shareholding structure, with NPCIL holding a 51% stake and NTPC retaining a 49% stake in ASHVINI. This revised structure emphasizes the collaborative approach and mutual commitment to advancing nuclear energy initiatives in India.

Additionally, the agreement facilitates the transfer of the Mahi Banswara Rajasthan Atomic Power Project (MBRAPP), comprising four units of 700 MW each, from NPCIL to ASHVINI. This strategic transfer is expected to bolster the joint venture's operational scope and resource base.

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The authorized share capital of ASHVINI was previously set at Rs 5 crore and the capital has now been significantly increased to Rs 15,000 crore, indicating ambitious plans for growth and investment in nuclear energy infrastructure.

The agreement also includes a revision in the board composition, with directors nominated by NTPC and NPCIL in proportion to their respective shareholdings, ensuring balanced representation and governance. This collaboration between NTPC and NPCIL aligns with their shared vision of promoting sustainable and efficient energy solutions.

By restructuring the joint venture and enhancing its financial and operational capacities, the partnership is poised to contribute significantly to India’s energy sector, particularly in nuclear energy development. The restructured joint venture is expected to pave the way for innovative projects and reinforce India’s position in the global nuclear energy landscape.

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