GE Power India's board has approved the acquisition of 50 per cent of the issued and paid-up share capital of NTPC GE Power Services (NGSL) for Rs 7.2 crore. Board of directors of the company in its meeting held on April 14, 2021 has approved the same. The acquisition of shares of NGSL from GEPower Systems GmbH is a related party transaction as the Company and GE Power Systems GmbH are GE Group Affiliates. The said related party transaction will be at arm's length price.
Upon completion of the acquisition of shares from GE Power Systems GmbH, the company would enter into renovation and modernisation of thermal power plants segment and partner with NTPC, which is a PSU and a pioneer in thermal power plants. This investment and JV with NTPC is expected to strengthen company's portfolio and open avenues for expanded scope of business for future projects. The indicative time period for completion of the acquisition is tentatively by April 30, 2021.
NGSL is engaged in the renovation and modernisation of existing power plants with primary focus on thermal power plants, and has also inter-alia ventured into supply, installation and subsequent operation and maintenance of thermal power plants.
GE Power India is engaged in the engineering, procurement, manufacturing, construction and servicing of power plants and power equipment.
