NHPC Ltd inks Joint Venture agreement with APGENCO

NHPC Limited has signed a Joint Venture Agreement with Andhra Pradesh Power Generation Corporation Limited (APGENCO) today i.e 27.09.2024 for incorporation of a Joint Venture Company for "Implementation of Pumped Storage Hydro Power Projects and Renewable Energy (solar/ floating solar/ wind) Projects in Andhra Pradesh".

NHPC and APGENCO have signed a Memorandum of Understanding (MoU) on 23rd August'2023, wherein both NHPC and APGENCO agreed to form a Joint Venture Company (JVC) for implementation of Pumped Storage Hydro Power Projects and Renewable Energy (Solar/Floating Solar/Wind) Projects in Andhra Pradesh in phases.

Subsequently, after getting approval from NHPC Board, DIPAM, NITI AYOG and Ministry of Power, Government of India now NHPC and APGENCO have signed a Joint Venture Agreement (JVA) on 27th September'2024 for incorporation of the Joint Venture Company.

In first phase two projects namely Yaganti PSP (1000 MW) & Rajupalem PSP (800 MW) with installed capacity aggregating to 1800 MW are considered for joint implementation and other projects subsequently identified in phase-II as mutually agreed.

The Company shall be incorporated with an initial paid-up capital to be subscribed in the ratio of 50:50 by NHPC and APGENCO respectively.

The Company shall have an initial Authorized Share Capital of Rs. 1 Crore (Rupees One Crore) divided into 10 lakhs (Ten lakhs) equity shares of the face value of Rs.10/- (Rupees ten) each.

Both NHPC and APGENCO shall have the right to nominate, any of the Directors nominated by them as the Chairman of the Board, for alternate terms. Each term of appointment of Chairman of the Board shall normally be for a period of 5 (five) years. For each 5 (five) years term, Chairman of the Board shall be nominated by one party whereas MD and CFO of the JV Company will be nominated by the other party. The parties shall have the right to appoint the Chairman of the Board from the date of incorporation. For first term Chairman shall be from APGENCO.

Both NHPC and APGENCO shall have the right to nominate the MD and CFO of the Company, for alternate terms, subject to the provisions of the Act. Each term of appointment of the MD and CFO shall normally be for a period of 05 (five) years.

Shares of NHPC Limited was last trading in BSE at Rs. 95.27 as compared to the previous close of Rs. 93.40. The total number of shares traded during the day was 3447755 in over 12313 trades.

The stock hit an intraday high of Rs. 96.00 and intraday low of 93.20. The net turnover during the day was Rs. 325306353.00.

Source : Equity Bulls

Keywords

NHPC INE848E01016 JVAgreement APGENCO JVCompany PumpedStorage HydroPowerProjects RenewableEnergy AndhraPradesh