NTPC wants to exit joint venture with BHEL

NTPCNSE -0.79 % Ltd has decided to exit the joint venture with BHELNSE 0.28 %, saying it is not a manufacturer of equipment and would rather concentrate on setting up and operating power plants. NTPC-BHEL Power Projects Pvt Ltd was set up in December 2007 as a 50:50 joint venture for manufacturing power equipment. The joint venture's first manufacturing facility at Mannavaram in Chittoor district of Andhra Pradesh started operations in 2016 but had very little orders. Top NTPC sources said the company has decided to exit the venture and has informed the power ministry about its intentions. NTPC wants BHEL to buy its equity in the joint venture, they said. The two companies had invested Rs 50 crore each as equity in the joint venture. The power producer wants BHEL to acquire its 50 per cent stake in the JV as also all the assets and liabilities and absorb all the employees, they said. The joint venture had little revenue visibility and needed a fresh injection of new orders or a new blueprint to sustain itself. ref: https://economictimes.indiatimes.com/industry/energy/power/ntpc-wants-to-exit-joint-venture-with-bhel/articleshow/63831466.cms