The government is expected to garner around ₹15,000 crore from this merger
He was replying to a question on whether such a consolidation can happen in the power sector to improve efficiency
NEW DELHI :
Power Minister R K Singh Thursday ruled out consolidating all state-owned power sector firms like NTPC, NHPC, SJVNL and PFC into a single entity, saying it would be the biggest company of the world but will not be manageable.
However, the minister said discussions are on regarding merger of some companies under the Power Ministry.
"If it (consolidation of all power sector PSUs) does happen, (then) it will be the biggest company of the world.
"But we have to think about whether it will manageable in the sense that you need managerial focus also and if it become too big and too diverse, it is matter of management control," Singh said at a press conference.
He was replying to a question on whether such a consolidation can happen in the power sector to improve efficiency.
When asked about mergers of some power sector PSUs, he said, "Discussions are happening of and on."
In December 2018, the Cabinet Committee on Economic Affairs approved the sale of the government's 52.63 per cent stake in REC to PFC. The two state-owned firms are non-banking finance companies which fund power sector projects.