THDCIL-NEEPCO Board Strength Reduced from 16 to 8 — NTPC CMD Appointed Non-Executive Chairperson
New Delhi: The Ministry of Power has restructured the boards of two major power sector PSUs — THDC India Limited (THDCIL) and North Eastern Electric Power Corporation (NEEPCO) — cutting their board strength from 16 members to just 8, with immediate effect from June 11, 2026.
The order, signed by Director Santosh Kumar, marks one of the most significant governance overhauls at these NTPC subsidiaries since they were acquired by the state-owned power giant.
CMD Post Abolished — NTPC Chief Becomes Non-Executive Chairperson
In the most consequential change, the post of Chairman and Managing Director (CMD) at both THDCIL and NEEPCO has been abolished with immediate effect. The CMD will be re-designated as Managing Director (MD), and future appointments to this post will be made through the Public Enterprises Selection Board (PESB) and the Appointments Committee of the Cabinet (ACC), following standard DPE guidelines.
The CMD of NTPC will now serve as the Non-Executive Chairperson of both companies — a move that tightens NTPC's strategic oversight without giving it an executive role.
Three Director Posts Abolished Immediately
The posts of Director (Personnel) and Director (Technical) — both currently vacant — are abolished with immediate effect. The post of Director (Finance) will be abolished once the incumbent superannuates, completes their tenure, or until further orders — whichever comes earliest. After that, the Director (Finance) of NTPC will participate in board meetings of both companies.
NTPC Nominee Seats Cut — State Governments Get Representation
NTPC, which had the right to nominate two directors each on the boards of THDCIL and NEEPCO under its Share Purchase Agreement, has been asked to forgo this right. Instead, both companies will now have two Nominee Directors — one from the Government of India and one from a state government.
For THDCIL, the state nominee will be from the Government of Uttar Pradesh. For NEEPCO, the second seat will rotate annually among North Eastern states in alphabetical order, starting with Arunachal Pradesh — while representatives from other northeastern states will be Permanent Invitees as per the Ministry's 2013 order.
The number of Independent Directors on each board is also halved — from 8 to 4.
Compliance Deadline: One Month
Both THDCIL and NEEPCO have been directed to submit proposals to the Ministry of Power within one month for amendments to their Memorandum of Association, Articles of Association, and other governing documents to give legal effect to the restructuring.
Why It Matters
The restructuring signals the government's intent to run these subsidiaries with leaner governance structures aligned with NTPC's parent authority, while reducing the administrative overhead of large boards. It also removes the long-standing additional charge arrangement for the CMD role, which ends immediately.