Millennium Post

PFC, REC may buy Govt’s share in NHPC

Public financial institutions in power sector Rural Electrification Corporation (REC) and Power Finance Corp (PFC) may buy Government's shares in state-owned NHPC as the Centre is racing against time to meet the disinvestment target for this fiscal.

The development assumes significance as the government had earlier said that it will come out with an alternative strategy to push PSU disinvestment in volatile markets. "The government has asked PFC and REC to buy some shares of government in NHPC," a source privy to the development said.

The source however did not reveal about the number of shares to be bought in the mini ratna firm and added that the Power Ministry has issued direction to the two institutions in this regard and a decision is likely soon. 

On January 15, the government said it will come out with an alternative strategy in 2-4 weeks to push PSU disinvestment in volatile markets. The Centre has set a record target of raising Rs 69,500 crore through disinvestment for this fiscal, comprising Rs 41,000 crore by way of minority stake sale and an additional Rs 28,500 crore from strategic sale.

Due to volatile market conditions, the government has been able to sell stake only in PSUs like IOC, PFC, REC and Dredging Corp. Companies including NHPC have been lined up for disinvestment in the current fiscal.

The Centre has been able to garner about Rs 13,340 crore after trimming its stake in companies like REC, Power Finance Corp, Dredging Corp of India Ltd or DCIL and Indian Oil Corp.

The government currently holds 85.96 per cent in NHPC while the share of the public in the PSU is 14.4 per cent.
Next Story
Share it