'Power Finance Corporation FPO likely next fiscal'

State-run Power Finance Corporation (PFC)'s follow-on public offer (FPO) is likely to hit the market next fiscal, Union Minister of State for Power, Bharat Solanki said today.

"The necessary procedure for disinvestment in PFC is underway and we expect the FPO to come out some time in the next fiscal," Solanki told PTI on the sidelines of an event here.

The Power Ministry has proposed a disinvestment of five per cent of the Centre's stake in the public sector finance institution, as well as the issue of 15 per cent fresh equity, through the FPO route.

"The decision on the FPO will be taken, taking into consideration the market situation and its favourability. If the market situation is favourble, we can expect the FPO to come out anytime in the next fiscal," he added.

The Corporation, which is engaged in funding power generation, transmission and distribution projects across the country, plans to use the funds raised from the FPO to finance both existing loans, as well as future lending activities.

At present, the government holds a 89.78 per cent stake in the firm. It had divested a 10 per cent stake through an initial public offer in 2007.

The government, which hopes to raise Rs 40,000-crore through its disinvestment programme this fiscal, has already mopped-up over Rs 20,000-crore through disinvestments in Coal India Limited, Satluj Jal Vidyut Nigam, Engineers India, Power Grid Corporation and MOIL.