TCS to be lead shareholder in power exchange venture with NTPC, NHPC, Power Finance Corp

12 August 2008

Software services provider Tata Consultancy Services will be the lead stake holder in the proposed power exchange venture with public sector power firms NTPC and NHPC and power sector financier Power Finance Corporation. 

In a regulatory filing today the software services provider revealed that last week it had signed a memorandum of understanding for forming a joint venture with India's largest thermal power producer, NTPC Ltd, along with  biggest hydropower generator, NHPC Ltd  and public sector power projects financier Power Finance Corporation to set-up and operate a national power exchange. 

TCS will hold majority 50.02-per cent stake in the proposed exchange company and the three public sector units would equally own the rest in equally with a 16.66-per cent stake each.

NTPC and NHPC together own a third of India's electricity generation capacity.

The joint venture partners have filed an application with the Central Electricity Regulatory Commission (CERC) for setting up the power exchange and expect to complete the formalities in one month.

The JV company would be registered as a publicly listed company with an authorised capital of Rs50 crore with an initial investment expected to range between Rs50 crore and Rs100 crore by each of the four partners.