The Revised Estimates had substantially lowered estimates of disinvestment receipts for the current financial year to Rs 65,000 crore, from Rs 1.05 lakh crore projected in Budget.
The government has raised Rs 11,500 crore through strategic sale of its stake in two state-owned power companies, THDC and NEEPCO, to NTPC. With this, the total disinvestment proceeds in the current financial year stand at over Rs 46,500 crore.
The Revised Estimates had substantially lowered estimates of disinvestment receipts for the current financial year to Rs 65,000 crore, from Rs 1.05 lakh crore projected in Budget. The government has sold 74.49 per cent stake in THDC for Rs 7,500 crore and 100 per cent in NEEPCO for Rs 4,000 crore.
The Cabinet Committee on Economic Affairs had in November 2019 given its in-principle approval for the sale of its stake in North Eastern Electric Power Corp (NEEPCO) and THDC India along with transfer of management control to NTPC. Following this, the board of NTPC approved the said acquisition in January and competition watchdog CCI also cleared it in February.
“DIPAM completed two more strategic disinvestment transactions. GOI’s 74.49 per cent stake in THDC at a consideration of Rs 7500 cr and 100 per cent stake in NEEPCO at Rs 4000 cr has been disinvested in favour of NTPC,” Secretary DIPAM said in a tweet. The Department of Investment and Public Asset Management (DIPAM) manages government share sale programme in CPSE.
Besides the 74.5 per cent stake in THDC India which is held by the Government of India, the rest 25.5 per cent stake is held by the Uttar Pradesh government. Shares of NTPC closed at Rs 83.05, up 3.17 per cent on the BSE on Friday. The government in the next financial year has set disinvestment target at Rs 2.10 lakh crore, including Rs 1.20 lakh crore from stake sale in central public sector enterprises (CPSEs).
The process for big-ticket strategic sale of Air India and BPCL has already set in motion and the sale is likely to be concluded in the next financial year beginning April. In March last year, state-owned PFC had acquired the government’s 52.63 per cent stake in REC for Rs 14,500 crore. In 2018, state-owned ONGC acquired the government’s entire 51.11 per cent stake in oil refiner HPCL for Rs 36,915 crore.