The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, today approved the disinvestment of 11.36 percent paid up equity capital of NHPC Ltd. out of the Government of India’s shareholding of 85.96 percent.
Increase in public shareholding would provide greater opportunity for the investing public to participate.Background:
NHPC Ltd. (formerly known as the National Hydroelectric Power Corporation Limited) is a Public Sector Undertaking under the administrative control of the Ministry of Power. NHPC has developed and constructed 20 hydroelectric power stations with a total installed capacity of 6,507 MW. NHPC is presently engaged in the construction of four additional hydroelectric projects. This is expected to increase the total installed capacity by 3,290 MW.
The paid up equity capital of the company, as on 31.03.2014 is Rs.11,071 crore. The President of India holds 85.96 percent of the paid up capital in NHPC. In accordance with the Government of India's disinvestment policy, the Government has decided to disinvest 11.36 percent equity in NHPC, out of its equity capital holding of 85.96 percent through an "Offer for Sale" of Shares through Stock Exchanges, as per SEBI Rules and Regulations. After this disinvestment, the Government of India’s shareholding in the company would come down to 74.60 percent and the company would become compliant to the revised Securities Contracts (Regulation) Rules (SCRR) norms of 25 percent for public shareholding in listed CPSEs.