NHL was formed to under the development of small- and medium-sized hydropower projects.

Confirming the speculations, NTPC spokesperson was quoted by the Live Mint as saying that the merger would result into positives including operation consolidation, reduction in overhead expenditure, enhanced efficiency and administrative control, and optimum utilization of resources.

NTPC official familiar with the developments revealed: "An extraordinary general body meeting has been called on 24 May to obtain the creditors’ consent and shareholders’ approval. This is part of our restructuring exercise."

In addition, the company is planning to terminate the joint ventures including NTPC-Alstom Power Services, BF-NTPC Energy Systems (BFNESL) and NTPC-Telk.

"While the decision to merge NHL has already been taken by the board, discussions on other JVs are yet to happen," added the NTPC official.