NTPC Plans to Divest its Stake in a Few Subsidiaries and Joint Ventures – EQ Mag Pro
The stake sales are part of the company’s assets monetization plan that entails raising ₹10,000 crore in three years
NEW DELHI : State-run power major NTPC plans to divest its stake in a few subsidiaries and joint ventures, including NTPC-SAIL Power Corporation Ltd (NSPCL) and NEEPCO, through private placements and initial public offerings (IPO).
An official aware of the development said the stake sales are part of the company’s assets monetization plan that entails raising ₹10,000 crore in three years. “We are trying (for divesting stake) in some companies. Under asset monetization we are trying sell NSPCL and there are some smaller things we may think of. In fact, we can even think of listing NEEPCO,” the official said.
NTPC acquired 100% equity stake held by the government in NEEPCO making it a wholly-owned subsidiary of the public sector power generation company. NSPCL, on the other hand is a joint venture company with 50% stake each with NTPC and SAIL.
In total, NTPC has 28 subsidiaries and joint venture companies including THDC and EESL.
The company has already invited expressions of interest for its renewable energy arm NTPC Green Energy Ltd. On 2 September, Mint reported that 13 suitors including Canada Pension Plan Investment Board (CPPIB), Brookfield and ArcelorMittal have shown interest in buying a minority stake in NPTC Green Energy.
NTPC aims to raise around ₹2,000 crore through the private placement of minority stake in the renewable energy company. Further, it is also looking to list NPTC Green Energy in the next financial year. The plan to divest stake in subsidiaries and joint ventures comes at a time when the company is looking to diversify its portfolio to non-fossil fuel sources of energy. The company will invest the funds raised from the monetization for investing in green energy projects, the official said.
Apart from solar and hydro, in the renewable space, the company also plans to develop a nuclear power project in Madhya Pradesh and foray into green hydrogen production going ahead.
Source: livemint
