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NTPC divestment
The Union power minister is of the view that NTPC disinvestment should bepostponed, otherwise it would not fetch the right price. In an attempt tostrengthen NTPC through restructuring and re-engineering, the options ofeither NHPC takeover or hiving off some assets of NTPC to a subsidiary arebeing considered. The fundamental flaw in the logic of minister of power isthat whatever be the restructuring, if done by him -- a politician and forcedon professionals -- the management of NTPC, the company will never get thediscounting it deserves. Nobody will be fooled by the hiving off of theassets to a subsidiary as it is for all practical purposes, a division ofthe company. If at all, the asset hive-off takes place, it should be ofplants serving MP, Bihar, Delhi and the eastern region.NTPC disinvestment ideally should be through a book-building route and aftermaking it clear that the proposed "re-engineering and restructuring" willnot be implemented. Otherwise, the clear signal being sent to the world isthat even navratnas are being treated as a personal fiefdom and that willhave an impact not only on NTPC disinvestment but on all the PSUstocks-listed as well as those being considered for divestment. In the event of the takeover going through, NTPC will takeover 2,115 mw ofhydel capacity besides 2,340 mw under construction and will put an end toall its expansion plans. There cannot be any technical justification for athermal company taking over huge hydel capacity and in this case it makes nocommercial sense either. Politicians should stop treating PSUs like personalproperties otherwise the proposed disinvestment programme will remain onlyon paper. Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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