Govt ups HP's stake in SJVNL by 0.5%

The government today approved hiking Himachal Pradesh's stake in Satluj Jal Vidyut Nigam by 0.5 per cent to maintain the state's equity in the PSU's 412-MW Rampur project at 30 per cent.

The state now owns 25.5 per cent equity stake in the hydel PSU from 25 per cent earlier.

The Cabinet Committee on Economic Affairs today approved the enhancement of Himachal Pradesh's equity stake in the project by issuance of 2.78 crore fresh shares for a value of Rs 40.79 crore, Home Minister P Chidambaram said after the meeting.

The decision has been taken to ensure successful disinvestment of the government's stake in SJVNL, he said.

The government in October last year had approved the sale of 10 per cent of Centre's equity in SJVNL out of 75 per cent.

SJVNL is a joint venture company between the Centre and the Himachal Pradesh government.

The government is disinvesting 10 per cent of its 75 per cent stake in SJVNL and expects to raise around Rs 1,200 crore from the process.

The initial public offer is likely to hit the capital markets in the first half of the current fiscal (2010-11).