Thursday, 21 November 2019

NTPC may shell Rs 10,000 crore for Centre’s stake in NEEPCO, THDC: Report

The Centre holds entire 100% stake in NEEPCO and has 75% holding in THDC
The state government holds a 26.85 per cent stake in SJVN, which owns and operates 2 GW of hydro power projects
Country’s largest power producer NTPC may make an aggressive bid of about Rs 10,000 crore to buy out the Centre’s stake in two hydro power producing companies – NEEPCO and THDC, two persons having knowledge of the development said.
The Cabinet Committee on Economic Affairs (CCEA) on Wednesday cleared strategic disinvestment in the two hydroelectric power generating PSUs in favour of NTPC that is looking to expand its operations and boost the renewable portfolio.
One of the persons quoted above said that the thermal power generator may offer close to Rs 10,000 crore though the transaction advisor will come to valuations about the entities later. The portfolio of projects with the NEEPCO and THDC make it a fit case to command good value.
The Centre holds entire 100 per cent stake in NEEPCO that operates close to 1,500 MW of power plants in the northeastern region, and has 75 per cent holding in THDC. The Uttar Pradesh government holds the balance 25 per cent stake in THDC India.
The stake sale would be only disinvestment proposal this year where a state-owned entity would pick up government equity in another public sector undertaking (PSU). In the case of BPCL disinvestment, the government is eyeing a private sector global MNC to take its entire equity….

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