Govt raises Rs 13,883 cr from strategic sale of THDCIL, NEEPCO, Kamrajar Port

(Eds: Adding more info)

New Delhi, Mar 27 () The government has raised Rs 13,883 crore through strategic sale of its stake in two state-owned power companies, THDCIL and NEEPCO, and Kamrajar Port Ltd.

The government has sold 74.49 per cent stake in THDC India Ltd (THDCIL) for Rs 7,500 crore and 100 per cent in NEEPCO for Rs 4,000 crore to state-owned power utility NTPC.

It also sold 66.67 per cent in Kamrajar Port Ltd to Chennai Port Trust for Rs 2,383 crore.

With these 3 strategic stake sales, the government has netted Rs 13,883 crore to its disinvestment kitty.

The total disinvestment mop-up for the current financial year stands at over Rs 48,883 crore, which is still lower than the Revised Estimates of Rs 65,000 crore.

In Budget 2020-21, the government substantially lowered projections of disinvestment receipts for the current financial year ending March 2020 to Rs 65,000 crore, from the Rs 1.05 lakh crore estimated earlier.

"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 on Friday.

"DIPAM completed strategic disinvestment of GOI stake of 66.67 per cent in Kamrajar Port Ltd in favour of Chennai Port Trust at a consideration of Rs 2383 cr," it said in another tweet.

The Department of Investment and Public Asset Management (DIPAM) manages government share sale programme in CPSE.

A total of 74.5 per cent stake in THDC India is held by the Government of India, the remaining 25.5 per cent stake is held by the Uttar Pradesh government.

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 THDCIL 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.

Shares of NTPC on Friday closed at Rs 83.05, up 3.17 per cent on the BSE.

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 has acquired the government's entire 51.11 per cent stake in oil refiner HPCL for Rs 36,915 crore. JD HRS