NHPC, GEDCOL to form a joint venture for setting up solar projects in Odisha

State-owned NHPC has signed a pact with Green Energy Development Corporation of Odisha Ltd (GEDCOL) to form a joint venture (JV) to set up a 500-megawatt (MW) floating solar power project in Odisha.

According to a BSE filing, the Promoters agreement was signed on January 4, 2022, between NHPC Limited and GEDCOL to form a JV company for the development of solar power projects in various water reservoirs in the state of Odisha.

In the JV, NHPC will hold a 74 percent equity stake, while GEDCOL will have 26 percent. The JV will have an authorised share capital of Rs 500 crore divided into 50 crore shares of Rs 10 each.

There will also be at least four directors on the board of the company and not more than 15 with a ratio in proportion to equity participation (i.e 74:26 rounded to 3:1) for NHPC and GEDCOL, respectively, subject to a minimum of one director by each of the parties.

In the case of minimum of four directors, three directors will be from NHPC and one director on the company’s board of directors will be from the GEDCOL side. The firm’s chief executive officer (CEO) and functional heads will be officers of the level below the board of directors. Its CEO and a chief financial officer will be from NHPC for effective management.

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