NHPC will form a joint venture with JKSPDCL, ‘Ratle Hydroelectric Power Corporation Ltd’, to implement an 850-megawatt (MW) hydroelectric project in the Chenab river basin. "A promoters agreement has been signed on April 13, 2021, between NHPC Ltd, Jammu & Kashmir State Power Development Corporation Ltd (JKSPDCL), and the Government of Union Territory of Jammu and Kashmir," according to a BSE filing.
Under the pact, the parties have decided and agreed to jointly establish a company under the name of ‘Ratle Hydroelectric Power Corporation Limited for the implementation of the Ratle hydroelectric project. It will have an installed capacity of 850 MW in the Chenab river basin and any other project that may be entrusted to the company in the Union Territory of Jammu & Kashmir.
The joint venture (JV) shall be formed in the shareholding ratio of 51% (NHPC Ltd) and 49% (JKSPDCL).
According to the pact, the company shall have an authorised share capital of Rs 1,600 crore divided into 160 crore equity shares of the face value of Rs 10.
"The chief executive officer (CEO) shall be responsible for the day-to-day management of the JV. The post of CEO shall be below board level and shall be the nominee of NHPC," it added.
Initially, the board shall comprise seven directors. JKSPDCL nominated three part-time directors, including the chairman, and NHPC nominated four part-time directors on the board of the company.