India’s beleaguered National High Power Testing Laboratory Pvt. Ltd. (NHPTL), a crucial facility for testing high-voltage transformers, is set for a significant revamp.
In a bid to ensure its long-term viability, Power Grid Corporation, a state-owned power transmission giant, has signed an agreement to infuse funds and acquire a 50% stake in the joint venture. This move comes after a revival plan was formulated in September 2022 in collaboration with the Ministry of Power. The financial woes of NHPTL necessitated a restructuring effort to safeguard this vital infrastructure for the nation’s power sector.
The restructuring plan entails a strategic realignment of ownership. Power Grid’s equity holding in NHPTL will be augmented to 50%, effectively granting them control over the company’s operations. The remaining 50% stake will be held equally by the existing joint venture partners – NTPC, NHPC, Damodar Valley Corporation (DVC), and Central Power Research Institute (CPRI) – with each holding a 12.5% stake. This financial infusion by Power Grid is contingent upon the approval of the management representatives from the other partnering organisations. Additionally, the company’s board structure will undergo a revision. Power Grid will appoint two directors to the board, including the chairperson. The remaining partners will have the right to nominate a director on a rotational basis.
The core objective of NHPTL is to establish a state-of-the-art, online high-power short circuit testing facility. This facility, envisioned as a fully independent and professionally managed entity, will address a critical gap in India’s power infrastructure. It will offer a comprehensive range of short circuit testing services for the electrical equipment manufacturing industry and power supply utilities. These tests, conducted in accordance with stringent Indian and international standards, ensure the safety, reliability, and efficacy of high-voltage transformers – a crucial component within the power transmission and distribution network. The revitalisation of NHPTL under Power Grid’s leadership is a positive development for India’s power sector. It underscores the government’s commitment to strengthening the country’s domestic testing capabilities for high-voltage equipment. This, in turn, will bolster the overall efficiency and reliability of the power grid, ultimately benefiting electricity consumers across the nation.
