NTPC, CIL form JV to focus on coal block acquisitions

The country's largest power producer, NTPC, today said it has formed a joint venture with state-run Coal India Ltd that will focus on acquisition of coal blocks in India and abroad.

The joint venture will be known as 'CIL NTPC Urja Pvt Ltd' and the two companies "shall contribute equally in the equity share capital of the company", the power major said in a filing to the Bombay Stock Exchange.

The JV was incorporated on April 27, it further said.

"This company has been formed to carry on the business of acquisition, in part or full, of green field or operational coal/lignite mine blocks in India and abroad and development of all kinds of coal/lignite mining for supply of fuels to the company, NTPC and other buyers," the company added.
    
Yesterday, PSU majors Nuclear Power Corporation of India Ltd and NTPC signed a joint venture agreement to set up nuclear power projects.
    
The JVA envisages incorporation of a company for setting up nuclear power projects in the country. While NPCIL will have 51 per cent equity in the new company, the remaining 49 per cent will be held by NTPC. The JV company is expected to be operational in a couple of months.
    
Shares of NTPC were being quoted at Rs 206.05, up by 0.15 per cent in afternoon trade on the BSE.