Government approves stake divestment in NTPC, NHPC

The government has approved proposals for divesting 11.36% stake in NTPC and 5% stake in NHPC Ltd, a move that it likely to fetch Rs 8,247 crore to the exchequer.

"The government has approved proposals for disinvestment in two power sector Central Power Sector Understandings (CPSUs)...NHPC (11.36%)...NTPC (5%)," Minister of State for Coal and Power Piyush Goyal said in a written reply in the Lok Sabha.

At the current market price, the government will fetch Rs 5,592 crore from the divestment.

The minister further said that none of the CPSUs of the Power Ministry have made any loss during the last three financial years.

Replying to another question, he said, the present policy of the government is to divest stake in CPSUs that have been making profits in the last three years.

Riding on strong demand from retail and institutional buyers, the government's 5% stake sale in power sector lender PFC in July was lapped up by investors, fetching about Rs 1,600 crore to the exchequer.

The Department of Disinvestment has a Rs 69,500-crore target from PSU disinvestment in the current fiscal, of which Rs 41,000 crore would come from minority stake sale and Rs 28,500 crore from strategic stake sale.