State-run hydro power giant NHPC said its board has approved a proposal to merge the company’s arm Jalpower Corporation Ltd with itself. NHPC had acquired Jalpower Corporation Ltd (JPCL) and its 120 MW Rangit Stage-IV hydro power project in March 2021 through insolvency proceedings.
“Board of Directors of NHPC Ltd (Company or Transferee Company) in its meeting held on Thursday, November 10, 2022 has inter-alia approved the scheme of merger/ amalgamation of Jalpower Corporation Ltd (Transferor Company) (a wholly owned subsidiary of NHPC) with the Company,” it said in a BSE filing.
It also stated that since the merger is between a wholly-owned subsidiary and holding company, no cash or issue of new shares shall 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 (120 MW) by remitting Rs 165 crore to the account of JPCL for distribution to the creditors as per the approved resolution plan.
JPCL is now a wholly-owned subsidiary of NHPC Ltd, it had stated.