Power Ministry asks government to rethink Disinvestment of power PSUs

Government’s plan to disinvest in power PSUs has created anxiety in the Ministry of Power. The ministry has conveyed that cutting down Centre’s stake in NTPC Ltd, PFC (Power Finance Corporation) and Power Grid to below 51 per cent, will have its own disadvantages.

These PSUs fear that the investors, including foreign lenders would not like this move. These power entities will be obliged to compensate bondholders if the government stake goes below 51 per cent. The government currently owns 54.14 per cent in NTPC, 54.96 per cent in Power Grid and 55.99 per cent in PFC.