NTPC to Merge with it’s own Hydro Subsidiary
Indian energy company NTPC is merging its hydro projects unit, NTPC Hydro (NHL), with itself as a part of its business restructuring process. NHL was formed to under the development of small- and medium-sized hydropower projects. Confirming the speculations, NTPC spokesperson was quoted as saying that the merger would result into positives including operation consolidation, reduction in overhead expenditure, enhanced efficiency and administrative control, and optimum utilization of resources.
An NTPC official familiar with the developments revealed that “an extraordinary general body meeting has been called on 24th May to obtain the creditors’ consent and shareholders’ approval.” In addition, the company is planning to terminate the joint ventures including NTPC-Alstom Power Services, BF-NTPC Energy Systems (BFNESL) and NTPC-Telk.
“While the decision to merge NHL has already been taken by the board, discussions on other JVs are yet to happen,” added the NTPC official.