State-run NTPC today said the Board of Directors has approved the merged of wholly-owned subsidiary NTPC Hydro with itself.
"With a view to have benefit of synergy of operation, enhancement of efficiency and administrative control to optimise utilisation of resources, the Board of Directors has approved amalgamation of NTPC Hydro with NTPC Ltd," the company informed BSE.
The merger is subject to compliance of Companies Act, 1956 and subject to receipt of requisite approval from the Ministry of Corporate Affairs, shareholders and stock exchanges, the company said.
Ministry of Power, the parent ministry of NTPC, last month, allowed amalgamation of NTPC Hydro with NTPC subject to approval from the competent authority.
NTPC, the country's largest power generation utility, yesterday, posted a 5% rise in consolidated net profit at Rs 9,814 crore in the financial year ended March 2012 against Rs 9,348 crore in the previous fiscal.
The company's net profit on a standalone basis slumped 6.7% to Rs 2,593.44 crore in the three months ended March against Rs 2,781 crore in the year-ago period.
Total income from operations in 2011-12 jumped to Rs 65,893 crore from Rs 59,505 crore in the year-ago period.
In the 2012, March quarter, total income from operations climbed to Rs 16,361 crore from Rs 15,597 crore in the comparable period.
Shares of NTPC were trading at Rs 148.25 apiece, down 0.90%, in the afternoon trade on BSE.