NTPC has announced a significant investment plan, approving a project for a Battery Energy Storage System (BESS) with a capacity of 4.70 GWh. The estimated cost for this ambitious project is ₹5,821.90 crore.
In addition to the BESS project, NTPC‘s board has also sanctioned an additional equity commitment of ₹3,173.67 crore in Meja Urja Nigam Private Limited (MUNPL), a joint venture with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL). This investment is aimed at setting up the Meja Super Thermal Power Project Stage-II, which will have a capacity of 3×800 MW. With this new commitment, NTPC’s total equity in MUNPL will rise to ₹5,000 crore, contingent upon a proportional equity contribution from UPRVUNL.
MUNPL, an existing 50:50 joint venture between NTPC and UPRVUNL, currently operates Meja Stage-I with a capacity of 2×660 MW. The new investment will facilitate the expansion of capacity through Meja Stage-II. The ownership structure will remain unchanged, maintaining a 50:50 shareholding between the two promoters.
The transaction with MUNPL is categorised as a related party transaction, although it does not fall under the ambit of a related party transaction as per SEBI (LODR) Regulations, 2015. The acquisition is expected to be completed by the fiscal year 2029-30, with the consideration being made in cash.
MUNPL has shown a steady growth in turnover over the past three years, with figures of ₹5,099 crore in FY 2024-25, ₹4,242 crore in FY 2023-24, and ₹3,810 crore in FY 2022-23. The company was incorporated on 2nd April 2008 and operates within the power generation industry in India.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).