Government may hive off central hydro projects into SPV companies

The government is exploring hiving off constructed central sector hydro power plants into special purpose vehicle (SPV) companies under their existing developers to maximise their valuations during stake sale. 

As per the proposed national assets monetisation pipeline, Niti Aayog has suggested segregating constructed projects and transferring them to an SPV, under the central public sector undertaking (CPSU) that owns the projects.  The SPVs consisting constructed projects might be subsidiaries of their respective CPSUs. This would ensure that the aggregate value of the parent and subsidiary company is greater than the present developer of the project.

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