NTPC and Power Grid sign MoU, NTPC gains
NTPC has signed a memorandum of understanding (MoU) with Power Grid Corporation of India.
The MoU is indicted to set up National Electricity Distribution Company (NEDCL) which will be a joint venture (JV) of the two on a 50:50 equity basis. The main aim of this JV is to undertake the business of distribution of electricity in distribution circles of India and related activities.
NTPC is the largest power utility company in India and has a presence in Coal, Gas, Solar PV, Hydro and Wind Power Generation and Coal Mining. Power Grid Corporation of India Limite is a transmission company engaged in the power transmission business.
On Monday, the shares of NTPC opened at Rs. 135 against Friday’s close of Rs. 134.55 while Power Grid opened at Rs. 199 against Friday’s close of Rs. 199.95 per share. At closing hours, the NTPC was trading at Rs. 135.50 per share, 0.71 per cent higher than the previous close while Power Grid was trading at Rs. 199.25, 0.35 per cent lower than the previous close.