Govt weighs selling stake in NHPC to NTPC
The central government’s 73.67% stake in NHPC is worth about ₹18,200 crore as per current prices
New Delhi: The ministries of finance and power are discussing a plan to sell the centre’s stake in hydropower producer NHPC Ltd to state-run peer NTPC Ltd, the nation’s biggest electricity generator by capacity, according to people familiar with the matter.
The government’s 73.67% stake in NHPC is worth about ₹18,200 crore as per current prices, according to Bloomberg calculations. Talks are at an initial stage and a deal is unlikely to be concluded this fiscal, although the government plans to complete some formalities before March, the people said.
The discussions point to the government’s plans to consolidate state-run energy firms to give them global size and scale, apart from helping it to boost revenue collections and stick to its budget gap target. The sale, if approved, will be the second such consolidation after state-run Oil and Natural Gas Corp. Ltd acquired the government’s stake in oil refiner Hindustan Petroleum Corp. Ltd for ₹36,900 crore.
The sale will boost NTPC’s green portfolio as it makes a gradual shift away from fossil fuels. NTPC last year sought to acquire the centre’s stake in hydropower firm SJVN Ltd, but it hasn’t been able to forge a deal yet.
Press officials at the power ministry, NTPC and NHPC didn’t immediately respond to an email seeking comments, while two calls to finance ministry spokesman D.S. Malik went unanswered.
- Tesla to cut workforce by 7%, sees smaller profit in Q4
- Wipro spins out govt business as separate segment
- Vibrant Gujarat meet: Ambani, Adani, Birla, others line up big investments
- Wipro announces 1:3 bonus; Q3 net profit rises 30%
- RIL to invest Rs 3 lakh crore in Gujarat in next 10 years : Mukesh Ambani
Editor's Picks »
- To boost confidence in oil cut, OPEC issues quota list
- China said to offer path to end US trade imbalance
- BlackRock, Goldman said to move some fund managers to US if no-deal Brexit
- RBI governor Shaktikanta Das sees inflation assessment as a challenge
- Delhi HC sets aside arbitral award in favour of Reliance subsidiary over Airport Express metro line
- What to expect from Q3 results of IndiGo, SpiceJet, Jet Airways
- Forget privatisation, govt has hugged its banks tighter
- Flat profit, rising debt are growing worries for Reliance
- Q3 results: HUL growth off a high base shows it’s on a roll
- DCB Bank Q3 results: Small loans give big pain as farm, mortgages lift delinquencies