State-run power producer NTPC has sought complete control over the two public-sector hydroelectric power companies it acquired last year under the Centre’s disinvestment programme, and suggested discontinuation of the posts of managing director and directors in these firms after the current incumbents’ tenures are over, an official said.
The Maharatna company, according to the official cited earlier, told the government its investors are worried that the company is investing ₹11,500 crore in these companies without getting management control.
It also said the two PSUs–North Eastern Electric Power Corp (NEEPCO) and THDC India–can leverage NTPC’s financial strength for cheaper finance.
“A transition roadmap is being prepared to explore synergies,” the official told ET. NTPC is also mulling listing of NTPC Renewable Energy Ltd, NEEPCO and THDC, he added.
As per the proposal, after the expiry of the term of the current chairmen and whole time directors of the two companies, NTPC’s chairman and managing director, Gurdeep Singh, or any other nominated director, will take charge as the non-executive chairman of the two PSUs.
Chief executives for the two PSUs may be appointed, the official said, adding that NTPC seeks to appoint two functional directors each on the board of the two PSUs, signifying a complete board restructuring and takeover.
The official said the Centre has not yet drawn a merger roadmap for Power Finance Corp (PFC) and REC Ltd, after the former acquired REC in 2019 in a ₹14,000-crore deal. The two power sector-dedicated infrastructure finance companies are likely to continue operations as separate entities in the near term on apprehensions that their consolidation may lead to financing issues in the sector.
