Govt to offload up to 7% stake in NLC India through OFS to raise ₹2,200 crore

The Centre is likely to offload up to 7% stake in coal miner NLC India through an offer for sale (OFS) this week, to raise up to ₹2,200 crore ($266 million) at current prices, Reuters reported Wednesday citing sources.

The report said the government will offer to sell 5% of its stake in the state-run firm with an option to sell an additional 2% stake if there is more demand.

The government holds a 79.2% stake in NLC India as of December 2023, whose shares have nearly tripled over the last year to ₹226.70 as of Wednesday.

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It is important to note that the Securities and Exchange Board of India (SEBI) allows promoters of a company to have a maximum of 75% in a listed company.

The report further said that the Indian government aims to sell shares worth at least ₹18,000 crore in the fiscal year which ends this month, but has divested shares worth ₹12,600 crore in the state-owned companies so far.

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Separately, NLC India Green Energy (NLCIL), the green arm of NLC India, has signed a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) for a 600 MW Solar Power Project, PTI reported.

NLCIL secured the 600 MW Solar Power Project in the Gujarat State Electricity Corporation Limited (GSECL) Khavda Solar Park tender, initiated by GUVNL through a competitive bidding process. In line with its commitment to renewable energy development, NLCIL has entrusted the project development to NIGEL, the report said.

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The PPA signed with Gujarat Urja Vikas Nigam Limited (GUVNL) encompasses the proposed 600 MW Solar Power Project at Khavda Solar Park, situated in Bhuj District, Gujarat. Under the agreement, GUVNL will procure the entire power generated by the project at a tariff of ₹2.705/kWhr.

The solar project is projected to generate approximately 1,577.88 million units (MU) of electricity annually, contributing to a cumulative electricity generation of 39.447 billion units (BU) over its lifetime.Also Read