The said agreement was sign on 4 November 2024. Under the terms of the agreement, both companies will form a 50:50 partnership to own and operate the existing 2,320 MW Chhabra Thermal Power Plant, located in Rajasthan. The plant is divided into two stages, Stage 1 includes 4 units of 250 MW each and Stage 2 includes 2 units of 660 MW each.
The JV will also explore opportunities for the plant's capacity expansion in the future. Both NTPC and RVUNL will have equal rights to appoint directors to the JV company, although management control will remain with NTPC. As per the agreement, NTPC will have the right to appoint key executives, including the Chief Executive Officer (CEO), Chief Financial Officer (CFO), and Chief Operating Officer (COO).
Additionally, the agreement includes a "Right of First Refusal" provision, which allows the other party the first opportunity to purchase shares in the event of a sale.
NTPC is India's largest energy conglomerate. It has presence in the entire value chain of the power generation business. As on 30 September 2024, the Government of India holds 51.10% stakes in NTPC.
The state-run power major’s consolidated net profit increased 12.33% to Rs 5,474.14 crore on 12.64% rise in revenue from operations to Rs 48,520.57 crore in Q1 FY25 over Q1 FY24.
The scrip shed 0.70% to Rs 398.05 on the BSE.