NTPC may buy Centre's stake in SJVN; parleys on with HP govt
New Delhi: State-run NTPC is likely to acquire the Central government's stake in SJVN Ltd, but the Himachal Pradesh government has expressed some reservations relating to this transaction, an official said.
At the current market price, sale of 63.79 per cent stake in SJVN would fetch the Centre about Rs 6,700 crore.
SJVN is a joint venture between the Centre and the Himachal Pradesh government, with a joint holding of 90.63 per cent.
At the end of September, Centre held 63.79 per cent stake in SJVN, while HP Government held 26.85 per cent.
An official said the discussions are going on for purchase of Centre's stake in SJVN, but Himachal Pradesh government has some concerns.
"We are looking at NTPC acquiring Centre's share in SJVN. The matter is stuck because of resistance from Himachal Pradesh government. We are discussing it," the official said.
If the acquisition goes through, this would be the third such transaction amongst Central Public Sector Undertaking (CPSEs).
In January, ONGC bought government's entire 51.11 per cent stake in oil refiner HPCL for Rs 36,915 crore. On Thursday, the Cabinet cleared PFC buying 52.63 per cent stake in REC, for an estimated Rs 15,000 crore.
Shares of SJVN were trading at Rs 26.40, down 1.12 per cent, while NTPC scrip was quoting 0.86 per cent lower at Rs 137.95 over previous close on the BSE.
The government has already mopped up over Rs 32,000 crore from CPSE disinvestment so far in the current fiscal. The budget target has been set at Rs 80,000 crore.
NTPC is the largest power utility in the country and has been ranked no.1 Independent Power Producer globally.
Earlier on Wednesday, NTPC said it has won 85 mega watt (MW) of solar capacity in a reverse auction held by the UP government.
"NTPC participated in the 550 MW tender floated by Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) for grid-connected solar projects.
In the reverse auction held on December 3, 2018, NTPC participated for 85 MW solar capacities and has won the entire capacity bid by it, at a levelised tariff of Rs 3.02/unit, applicable for 25 years," the company said.