NHPC board okays proposal to form subsidiary for renewable energy biz

State-owned hydro power giant NHPC on Friday said its board has approved the proposal to form a subsidiary for the development of renewable energy, small hydro and green hydrogen projects.

"Board of Directors of Company in its meeting held today i.e. Friday, September 24, 2021 inter-alia has considered and approved the proposal regarding the formation of a Wholly Owned Subsidiary Companyfor development of renewable energy, small hydro and green hydrogen projects, subject to the approval of Government of India," a BSE filing said.

The board has also accorded its investment approval to contribute initial equity of Rs 20 Crore by NHPC Limited in the proposed subsidiary company, it stated.

In a separate filing, the company said the board in its meeting held on September 24, 2021, inter-alia has considered and approved the proposal regarding the formation of a wholly-owned subsidiary by NHPC, which will act as an investment vehicle and company for commissioned hydropower projects for facilitating the monetisation of investment made, subject to the approval of the Government of India.

The board has also accorded its investment approval to contribute initial equity of Rs 5 crore by NHPC Ltd in the proposed subsidiary company.

In another filing, the company said the board in its September 24 meeting also considered and approved the proposal to initiate the process of merger/amalgamation of Jalpower Corporation Ltd (wholly-owned subsidiary) with NHPC as per applicable provisions of the Companies Act, 2013, subject to approval of Government of India.