Government Approves Board Restructuring at THDC India and NEEPCO

The Department of Public Enterprises (DPE) has approved changes to the board structure of NTPC subsidiaries THDC India Ltd (THDCIL) and North Eastern Electric Power Corporation Ltd (NEEPCO). The changes are to reduce the board size and simplify management layers.

The chairman and managing director of NTPC will no longer hold operational roles in THDC and NEEPCO. Instead, they will serve as non-executive chairpersons. Separate managing directors will be appointed as per DPE rules through the Public Enterprises Selection Board.

Positions to Be Removed

The roles of Director (Finance), Director (Technical), and Director (Personnel) at both companies will be abolished. NTPC’s Director (Finance) will represent financial matters in meetings involving THDC and NEEPCO boards.

Following the changes, the total board strength at each company will drop from 14 to 7. This will include two nominee directors from the government or NTPC, and three independent directors.

Nominee Director Limitations

DPE has advised against increasing NTPC’s representation on the boards. It recommended continuing only with government nominee directors and removing NTPC’s nominee directors beyond the chairperson and finance director’s participation in financial discussions.

The number of independent directors will now be limited to three. This is lower than the six suggested by the Ministry of Power, but in line with DPE’s guidelines for board composition.

The Ministry of Power has been asked to revise and resubmit the board composition proposal. Decisions regarding current board members will be left to the ministry’s discretion.

Ownership and Operations

NTPC acquired 74.5% of THDC and 100% of NEEPCO from the Centre in March 2020 for ₹11,500 crore. THDC operates major hydropower projects like Tehri and Koteshwar, while NEEPCO manages hydro, thermal, and solar plants across the northeast with 2.05 GW capacity.

Read More: NTPC REL and the Goa Government Collaborate to Develop 300 MW of Renewable Energy Projects!

NTPC Share Price Performance

As of 11:51 AM on July 22, 2025, NTPC share price was trading at ₹340.85, down 0.20% for the day, up 5.72% over the past six months, but down 8.74% over the past year.

Conclusion

The approved changes are a shift towards a smaller, simplified governance structure at THDC and NEEPCO, in line with updated public sector guidelines.

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