NTPC signs MoU with ADB for setting up a joint venture Company to undertake Renewable power generation

National Thermal Power Corporation Ltd (NTPC) has announced that a Memorandum of Understanding was signed on July 23, 2007 between the Company and Asian Development Bank (ADB), a multilateral Development Financial Institution to establish a Private Ltd Company in joint venture initially among the Company and other strategic investors with equity shareholding of upto 50% by the Company (and other government entities) and balance equity share holding contributed by other strategic investors. Strategic investors shall be selected by the Company and ADB. After fulfillment of certain conditions, ADB is expected to acquire 20% stake at a later stage.

The Company shall be a generating Company and over the next three years, will establish and hold a portfolio of about 500 MW of renewable generation. Initially the business will primarily concentrate on wind power, mini and micro hydroelectric power projects, but the portfolio may also include other renewable power generation resources such as industrial cogeneration, waste-to-energy, solar, geothermal, bio mass and bio fuel projects. The Company would also have a regional and later global outlook as a major investor and facilitator of renewable energy.

For the first 15 years after formation of the Company, the Chairman of the Board shall be a Director nominated by the Company.

Source : Equity Bulls

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