The government is finalising plans to sell stake in at least two power sector PSUs,including NHPC Ltd and Tehri Hydro Development Corporation India Ltd (THDCIL) in this fiscal.
We have already circulated notes for approval from the Cabinet Committee on Economic Affairs for disinvestment in these two firms, said a senior government official,adding that no definite timeline has been set for the issues. At present,we are more concerned about getting regulatory clearances. The timing of the issue can be determined at a later stage, the official said.
Under the proposal being mooted,the government plans to divest 10 per cent stake in THDCIL through an initial public offer and also sell about 11 per cent stake in NHPC through an offer for sale. Disinvestment in THDCIL will help the company gain more capital for its future expansion plans, the official said.
THDCIL is a joint venture between the Centre and the Uttar Pradesh government. It was set up in 1988 to develop and operate the Tehri Hydropower Complex as well as other projects. Meanwhile,the government hopes to pare down its share holding in NHPC to 75 per cent post disinvestment,which is expected to be routed through an offer for sale (OFS). At present,we are planning to to it through OFS,but if the PSU wants it can also buyback its shares, the official said. The issue will raise close to Rs 2,800 crore and will bring down government stake to 75 per cent from 86.36 per cent stake in the company. The government had earlier sold 5 per cent of its shares in NHPC in 2009,raising Rs 2,012.85 crore.