NTPC, PowerGrid ink pact to form joint venture for power distribution biz

State-run power major NTPC Monday said it has signed an agreement with Power Grid Corporation to form a 50:50 joint venture to enter electricity distribution business and other related activity.

"(inform about)...signing of a joint venture agreement with Power Grid Corporation to incorporate a Joint Venture Company (JVC) between NTPC and Power Grid with equity participation of 50:50 respectively with an objective to undertake the business for distribution of electricity in distribution circles in various states and union territories of India and other related activities," NTPC said in a BSE filing.

According to the statement, the JVC shall be incorporated only after obtaining necessary approvals from the government.

The two firms would set up the joint venture firm under the name of 'National Distribution Company'.