Central government to sell states in NEEPCO and THDC

The central government has initiated the process of strategic disinvestment in public sector undertakings (PSUs) for 2019-20 by inviting bids from advisers for sale of its controlling stake in North Eastern Electric Power Corporation Limited (NEEPCO) and THDC India Limited. THDC India is a 75:25 per cent joint venture – between the central government and the Uttar Pradesh government, while the central government owns 100 per cent stake in NEEPCO. The government stake in both PSUs will reportedly be acquired by NTPC Limited, which will have to pay nearly Rs 100 billion for the two transactions. The government has identified NTPC for this strategic sale as it would add value to the company and help the centre by way of higher dividend payouts. Further, NTPC has a stable operational record and a good cash reserve for the proposed transactions.

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