NTPC Acquires 26% Stake in Joint Venture from Municipal Corporation of Delhi

NTPC Acquires 26% Stake in Joint Venture Company NEWS

NTPC, India's largest power producer, has acquired a 26% stake in NTPC EDMC Waste Solutions Private Limited (NEWS), a joint venture company with the Municipal Corporation of Delhi (MCD). This acquisition makes NEWS a wholly-owned subsidiary of NTPC, with the power giant now holding a 100% stake in the company.

According to an exchange filing, NTPC has signed an agreement with MCD and NEWS to terminate the Joint Venture Agreement dated June 11, 2019, and acquire MCD's 26% shareholding in NEWS. The NTPC Board and the House of Corporation, as well as MCD, have given their approval for the purchase of MCD's stake in NEWS.

The cost of acquiring MCD's 26% shareholding in NEWS is Rs 5,20,000, which is equivalent to 52,000 equity shares at a face value of Rs 10 per share. NEWS was incorporated on June 1, 2020, as a joint venture company between NTPC and MCD (formerly EDMC) with a 74% and 26% shareholding, respectively. The company is based in Delhi and is engaged in waste management and energy generation business.

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Timeline:

• June 1, 2020: NEWS was incorporated as a joint venture company between NTPC and MCD.
• June 11, 2019: NTPC and MCD signed the Joint Venture Agreement.
• Thursday (date not specified): NTPC acquired MCD's 26% stake in NEWS.