NTPC and PowerGrid Corporation of India Limited have signed an agreement to set up the National Electricity Distribution Company Limited (NEDCL).

NEDCL will be a joint venture of the two on 50:50 equity basis. “The main aim is to undertake business for distribution of electricity in distribution circles of India and related activities,” a PGCIL statement said.

The agreement for setting up the JV was signed on Friday. It is in the preliminary stages, a power ministry representative said.