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NTPC may offer Rs 10,000 crore for govt's stake in NEEPCO, THDC: Report

BusinessToday.In     November 21, 2019

NTPC, the country's largest energy conglomerate, may make an aggressive bid of about Rs 10,000 crore to acquire the central government's stake in two unlisted state-owned power companies - THDC and Neepco, suggested media report.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday gave in-principle approval for strategic disinvestment in two hydro power-producing companies to state-owned NTPC.

News agency IANS quoted a source as saying that the power major may shell out nearly Rs 10,000 crore to acquire stake in the companies. As of now, the transaction advisor has not evaluated the entities. Disinvestment department DIPAM has already started the process of appointing transaction and legal advisor for the deal. The portfolio of projects with the NEEPCO and THDC make it a fit case to command good value, the source said.

Also Read: Cabinet gives nod to sell stake in BPCL, 4 other PSUs

"NEEPCO and THDC fit into the scheme of things for NTPC that has grown its coal-fired capacity but is yet to get into the big league on renewable. The takeover of the two hydropower generating companies would give a foothold to NPTC in the north-eastern region while also allow synergies with several of its plants in the north of the country," source said.

Currently, the government holds a 100 per cent stake in NEEPCO, which operates and maintains power stations in the north-eastern region, and 75 per cent in THDC. The Uttar Pradesh government owns the remaining 25 per cent stake in THDC India.

Also Read: Air India-Bharat Petroleum disinvestment: Govt to sell the two state-run companies by March 2020

The government has also approved stake sell in three other PSUs, including state-owned Bharat Petroleum Corporation Ltd (BPCL). The Centre will sell its 53.29 per cent stake in BPCL, along with transfer of certain management control. This is excluding BPCL's equity shareholding of 61 per cent stake in Numaligarh Refinery.

Apart from BPCL, the government has also approved disinvestment in Shipping Corp of India (SCI) and Container Corp of India.

Edited by Chitranjan Kumar

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