NTPC enters Joint Venture Deal with Rajasthan Government for Thermal Power Plant

NTPC Ltd. has formed a 50:50 joint venture agreement with the Rajasthan Rajya Vidyut Utpadan Nigam Ltd. (RVUNL) to jointly own and operate the Chhabra Thermal Power Plant in Rajasthan.

The agreement, signed on November 4, establishes equal ownership and operational control between the two entities for the power plant, which has a total installed capacity of 2,320 MW. 

The Chhabra plant consists of two stages: Stage 1 includes four units of 250 MW each, while Stage 2 has two units of 660 MW each. As part of the agreement, both parties have agreed to create a joint venture company that will manage the existing plant and explore opportunities for future capacity expansion.

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As part of the JV agreement, both NTPC and RVUNL will have equal rights to appoint directors to the JV’s board. However, NTPC will maintain management control of the plant and will have the authority to appoint key executive roles, including the Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer. Additionally, the agreement includes a right of first refusal to the other promoter in case of any share selling.

Shares of NTPC initially rose by as much as 0.79% to reach Rs 404.10 per share. However, the stock later lost these gains, trading 0.46% lower at Rs 399.10 per share as of 11:38 a.m. This decline contrasts with a 0.41% drop in the NSE Nifty 50 Index.

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