Power Grid Corporation of India Ltd (PGCIL) is set to become the single-largest shareholder in National High Power Test Laboratory Pvt Ltd (NHPTL).
On April 23, 2024, PGCIL co-signed a supplementary joint venture agreement with all the remaining shareholders of NHPTL – namely, NTPC Ltd, NHPC Ltd, Damodar Valley Corporation (DVC) and Central Power Research Institute (CPRI) – as part of a revival plan agreed upon by NHPTL shareholders on September 15, 2022.
Following the execution of this joint venture agreement, PGCIL will be the single-largest shareholder in NHPTL with a stake of 50 per cent. The remaining 50 per cent will be equally held by NTPC, NHPC, DVC and CPRI, with each of the four entities holding 12.5 per cent.
Impact on NHPTL board
Upon infusion of equity by PGCIL in NHPTL, the board of NHPTL will comprise two directors, including Chairman, both from PGCIL, and one nominee director by other promoters on rotational basis.
Financial crisis
A stock exchange filing by PGCIL said that in view of the financial crisis of NHPTL and for long term sustenance of this important testing facility for high voltage transformers in the country, a revival plan for NHPTL was agreed upon in a meeting held on September 15, 2022 with the Union power ministry. It was therein agreed that PGCIL shall infuse equity in NHPTL, subject to approval of respective managements of JV parties. This involved restructuring of the equity capital of NHPTL, as discussed in this story.
Commissioned in 2017
According to information available in the Annual Report: 2022-23 of PGCIL, the paid-up share capital of NHPTL, as of March 31, 2023, was Rs.152 crore out of which PGCIL’s share was Rs.30.40 crore (or 20 per cent). Each of the four other shareholders of NHPTL – NTPC, NHPC, DVC and CPRI – also held 20 per cent each.
The annual report also mentions that the High Voltage Transformer (HVTR) Section of NHPTL under Phase-I was put under commercial operation with effect from July 1, 2017. The HVTR lab is capable of short circuit (SC) testing of power transformers for all possible ratings with voltage class starting from 132kV to 765kV. According to information available with T&D India NHPTL successfully conducted its first commercial online short-circuit test on a 765kV transformer on September 11, 2017.
On the other hand, the Medium Voltage Transformer (MVTR) Section was under write off. NHPTL had no operating profit, as of March 31, 2023, and a provision for impairment of assets amounting to Rs.94.55 crore was made in the books of NHPTL during FY23 the PGCIL annual report observed.
Featured photograph shows a testing facility of NHPTL
