The power ministry on Monday said the pre-condition set by Sebi on appointment of adequate independent directors on the board of state-owned National Hydroelectric Power Corporation will be given top priority and the corporation will hit the market with an initial public offering by August this year.
Appointment of adequate non-official directors is a condition mandatory for any company to float an IPO. As per the guidelines of market regulator SEBI, 50% of the board must be of non-official directors.
Minister of state for power Jairam Ramesh has also assured awarding the mini-ratna status to NHPC.
?I have met heavy industries minister Santosh Mohan Dev and since NHPC is not taking any budgetary support since April 1, 2007, it should be conferred with mini-navaratna status .? On NHPC?s public issue getting delayed for over a year now, Jairam said, ?There will be no further delay in bringing the IPO as it is very critical for the success of the company. NHPC needs seven non-official independent directors on its board. Four have already been appointed and three more will be on the board soon,? Jairam said.