NHPC Limited’s board has approved a proposal to merge the company’s wholly owned subsidiary,Jalpower Corporation Limited (JPCL), with itself.
NHPC had acquired JPCL and its 120 MW Rangit Stage-IV hydro power project in March 2021 through insolvency proceedings. Since the merger is between wholly-owned subsidiary and holding company, no cash or issue of new shares will be undertaken. There will be no change in shareholding pattern post merger. Earlier in March 2021, the company had informed the bourses that it has completed the formalities for the takeover of Rangit Stage-IV hydro electric project by remitting Rs 1.65 billion to the account of JPCL for distribution to the creditors as per the approved resolution plan. The merger will lead to efficient utilisation of capital and create a consolidated base for future growth of NHPC Limited; facilitate focused management and efficient utilisation of assets and resources; avoid duplication of administrative functions and eliminate multiple record-keeping.