The Centre is preparing a major public sector monetisation push with state-run NTPC Ltd, Indian Oil Corporation Ltd. and Coal India Ltd. planning to list fertiliser joint venture Hindustan Urvarak & Rasayan Ltd (HURL) in FY27 through a stake sale expected to raise Rs 5,000-6,000 crore.
The proposed listing comes at a time when disruption in the Strait of Hormuz has heightened concerns over global fertiliser and energy supplies, with India remaining dependent on imports of urea and other fertilisers from West Asia.
“The plan is the public offering of HURL within the ongoing fiscal as part of the asset monetization roadmap by offloading 10-11% stake in total to raise Rs 5,000-6,000 crore,” a senior official aware of the development said.
The public issue would be among the biggest fertiliser-sector listings by a state-backed company in recent years and forms part of the Centre’s broader National Monetisation Pipeline (NMP) programme.
Reviving Urea Giants
HURL was incorporated in 2016 to revive closed fertiliser plants and expand domestic urea manufacturing capacity. NTPC, IndianOil and Coal India each hold 29.67% stake in the company, taking combined promoter holding to around 89%, while Fertilizer Corporation of India Ltd (FCIL) and Hindustan Fertilizer Corporation Ltd (HFCL) together own the remaining 11%.
The company operates fertiliser manufacturing units at Gorakhpur in Uttar Pradesh, Barauni in Bihar and Sindri in Jharkhand.
Each unit has capacity of 2,200 metric tonne per day (MTPD) of ammonia and 3,850 MTPD of urea, equivalent to 1.27 million metric tonnes per annum (MMTPA) of neem-coated urea. According to company information, HURL currently caters to fertiliser demand across 17 states.
The monetisation roadmap also includes plans to list hydropower companies THDC India Ltd (THDCIL) and North Eastern Electric Power Corporation Ltd (NEEPCO), both subsidiaries under NTPC.
“The monetization plan also involves public listing of the shares of hydro power companies THDC and NEEPCO. One of these two are expected to be listed in FY27,” another official aware of the development said.
The proposed listings come amid a renewed government push for hydropower expansion and infrastructure monetisation.
THDCIL, a joint venture between NTPC and the Uttar Pradesh government, operates major hydroelectric projects including Tehri, Koteshwar and Vishnugad Pipalkoti in Uttarakhand along with renewable and thermal assets in other states.
Established in 1988 for development of the 2.4 GW Tehri Hydroelectric Project Complex, THDCIL currently has operational generation capacity of 4.35 GW across energy sources. NTPC holds 74.49% stake in the company while the Uttar Pradesh government owns around 25.5%.
NEEPCO, incorporated in 1976 for power development in the northeastern region, currently operates six hydroelectric projects, three thermal plants and one solar power station with combined installed capacity of 2.05 GW.
In March 2020, NTPC acquired the Centre’s stake in THDC and NEEPCO for around Rs 11,500 crore.
Officials said the proposed listings would require approval from the Department of Investment and Public Asset Management (DIPAM).
The Centre launched the second phase of the National Monetisation Pipeline in February this year, targeting monetisation of assets worth Rs 16.73 trillion by 2030. The power sector alone is expected to contribute around Rs 2.76 trillion under the programme.