Economy

Centre raises ₹11,500 crore from strategic sale of THDC, NEEPCO to NTPC

The government in the next financial year has set disinvestment target at ₹2.10 lakh crore./ Photo for representation

The government in the next financial year has set disinvestment target at ₹2.10 lakh crore./ Photo for representation  

With this, the total disinvestment proceeds in the current financial year stand at over ₹46,500 crore.

The Central government has raised ₹11,500 crore through strategic sale of its stake in two State-owned power companies, THDC India Ltd. and NEEPCO, to NTPC Limited.

With this, the total disinvestment proceeds in the current financial year stand at over ₹46,500 crore.

The Revised Estimates had substantially lowered estimates of disinvestment receipts for the current financial year to ₹65,000 crore, from ₹1.05 lakh crore projected in the Budget.

The government has sold 74.49% stake in THDC for ₹7,500 crore and 100% in NEEPCO for ₹4,000 crore.

The Cabinet Committee on Economic Affairs had in November 2019 given its in-principle approval for the sale of its stake in North Eastern Electric Power Corp (NEEPCO) and THDC India along with transfer of management control to NTPC.

Following this, the board of NTPC approved the said acquisition in January and competition watchdog Competition Commission of India (CCI) also cleared it in February.

“DIPAM completed two more strategic disinvestment transactions. GOI’s 74.49% stake in THDC at a consideration of ₹7,500 cr and 100% stake in NEEPCO at ₹4,000 cr has been disinvested in favour of NTPC,” secretary, DIPAM said in a tweet.

The Department of Investment and Public Asset Management (DIPAM) manages the government share sale programme in CPSE.

Besides the 74.5% stake in THDC India which is held by the Government of India, the rest 25.5% stake is held by the Uttar Pradesh government.

Shares of NTPC closed at ₹83.05, up 3.17% on the BSE on Friday.

The government in the next financial year has set disinvestment target at ₹2.10 lakh crore, including ₹1.20 lakh crore from stake sale in central public sector enterprises (CPSEs).

The process for big-ticket strategic sale of Air India and BPCL has already set in motion and the sale is likely to be concluded in the next financial year beginning April.

In March last year, State-owned PFC had acquired the government’s 52.63% stake in REC for ₹14,500 crore.

In 2018, state-owned ONGC acquired the government’s entire 51.11% stake in oil refiner HPCL for ₹36,915 crore.

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Printable version | May 30, 2020 5:05:05 PM | https://www.thehindu.com/business/Economy/centre-raises-11500-cr-from-strategic-sale-of-thdc-neepco-to-ntpc/article31183434.ece

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