NTPC signs MoU with ADB for renewable energy venture

24 July 2007

Mumbai: The National Thermal Power Corporation of India (NTPC) has signed a memorandum of understanding (MoU) with Asian Development Bank (ADB) to set up a joint venture firm that will focus on renewable power generation.

NTPC and other government entities will have 50 per cent stake in the proposed JV while the balance would be contributed by other strategic investors. ADB is expected to acquire 20 per cent stake at a later stage after fulfillment of certain conditions, NTPC said in a filing with the Bombay Stock Exchange (BSE).

It may also However, the portfolio may also include other renewable power generation resources such as industrial co-generation, waste-to-energy, solar, geothermal, bio mass and bio fuel projects, it said.

The company would also have a regional and later global outlook as a major investor and facilitator of renewable energy.

For the first 15 years after formation of the company, the chairman of the board shall be a director nominated by the company.