Power Grid to infuse funds in National High Power Testing Laboratory; to hold 50 pc stake

The funds be infused subject to the approval of the management of JV parties - NTPC, NHPC, DVC (Damodar Vally Corporation) and CPRI (Central Power Research Institute), the filing said.

In a meeting held on September 15, 2022, a revival plan was agreed with the Ministry of Power in view of the financial crisis of NHPTL and for the long-term sustenance of this important testing facility for high voltage transformers in the country, it added.

The revival plan comprises transactions between shareholders with an outcome of revised equity holding of POWERGRID in NHPTL as 50 per cent and the remaining 50 per cent of equity to be held equally, that is, 12.5 per cent each by the other four JV partners.

Upon infusion of equity by Power Grid in NHPTL, the board composition will be revised to two directors, including the chairman of NHPTL from Power Grid and one director by other promoters on a rotation basis, the filing said.

The objective of JV is to establish an on-line High Power Short Circuit Test Facility, which will be a fully independent professionally managed stand-alone testing facility in India. This will provide a full range of short circuit testing for the electrical equipment manufacturing industry and power utilities in conformance with Indian and International Standards.