NTPC buys out MCD to take full control of its waste-to-energy JV

New Delhi: State-run NTPC Limited is tightening control over a niche waste-to-energy asset that has so far been low in turnover but is being positioned as part of a broader waste-to-wealth strategy. The company said on Thursday that it has signed an agreement with Municipal Corporation of Delhi (MCD) and NTPC EDMC Waste Solutions Private Limited (NEWS) for termination of the joint venture agreement dated June 11, 2019, and acquisition of MCD’s 26 percent shareholding, or 52,000 equity shares, in NEWS. With this acquisition, the company said, “NEWS shall become the wholly-owned subsidiary of NTPC.”

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Deal aimed at consolidating waste-to-wealth business

In the filing, NTPC said it already holds 74 percent of NEWS and that the present acquisition is of MCD’s 26 percent equity stake. It said, “With the present acquisition, NTPC intends to consolidate its Waste-to-Wealth business in this wholly-owned subsidiary.” The company said the acquisition is expected to be completed in Q1 of FY 2026-27 and will be made in cash.

Transaction value is Rs 5,20,000

NTPC said the cost of acquiring the 26 percent shareholding is Rs 5,20,000, based on 52,000 equity shares at face value of Rs 10 per share. The filing also said the proposed acquisition is a related party transaction, but “approval of the Audit Committee under Regulation 23 of the SEBI (LODR) Regulations, 2015 is exempted,” since the transaction is between NTPC, a listed PSU, and MCD, a government/local authority entity.

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NEWS was set up as a waste management & energy generation venture

NEWS was incorporated on June 1, 2020 as a joint venture company of NTPC and MCD, with 74 percent and 26 percent shareholding, respectively, to carry out waste management and energy generation business, the filing said. It added that the company’s turnover in the last three years stood at Rs 0.34 lakh in 2022-23, Rs 0.29 lakh in 2023-24 and Rs 1.28 lakh in 2024-25.

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