Going ahead with bond issue is NHPC decision: Scindia

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NHPC Ltd, India's biggest hydro- electric producer, will independently decide on raising Rs 1,000 crore through bonds, Power Minister Jyotiradiya Scindia said steering clear of timing of the issue in stressed market conditions.

     
"Let them (NHPC) take an independent decision. I don't believe in putting my finger in every pie. Let the management take an independent decision," he told PTI in an interview.

     
He said: "Why do you want the Minister of Power to dabble in everything... Then there would be no accountability. My way of functioning is very clear... Once you have chosen a team that needs to be held accountable."

     
NHPC plans to raise Rs 1,000 crore through issuance of tax-free bonds in the domestic market. This would be first tax free bond issue by the company.

     
The sum raised from the bond issue will be utilised towards the company's expansion plans.

     
However, sources said the company was reluctant to go ahead with the bond issue as the market conditions are not favourable and NHPC's stock has been battered in the market.

     
Also the company is yet to have a full-time Chairman and Managing Director which is impacting decision-making at the top level, sources said.

     
At present G Sai Prasad, Joint Secretary (Hydro) in the Ministry of Power is holding the additional charge of Chairman and Managing Director of NHPC.

     
At the same time the government is also planning to sell 11.36% of its stake in NHPC through an Offer For Sale (OFS) on the stock markets to raise up to Rs 2,400 crore.

     
Patting himself for bringing better valuation for the state-run NTPC's share sale, Scindia added, "If there is an inter-ministerial problem which will effect the valuation of the company such as what I resolved in NTPC then I believe in resolving them because it cannot be resolved at their level."

     
NHPC, which has a generation capacity of 5,295 MW, missed target to become a 10,000 MW company by 2010 due to delay in various regulatory clearances for its projects.

     
Government currently holds 86.36% stake in NHPC.

     
NHPC got listed on the bourses in 2009 after the government divested 5 percent stake while company issued 10 percent fresh equity.

     
The government plans to raise Rs 40,000 crore through disinvestment in the public sector unit during the current fiscal.

     
So far during the current fiscal, the government has raised raised Rs 568 crore through divesting 9.33% stake in MMTC and Rs 260 crore from the sale of 4.01% stake in Hindustan Copper.

   
In 2012-13, the government had raised Rs 23,920 crore through disinvestment.