Ministerial note on 15% divestment in PFC

The Power Ministry is believed to have sent a cabinet note to the department of disinvestment on its 15 per cent follow on public offer (FPO) in Power Finance Corporation next year, a source revealed today.

"The ministry has circulated the note to Department of Disinvestment yesterday for its comment on the FPO," the source said.

The government plans to divest 10 per cent stake in Power Finance Corp through the follow-on public offer, while the company has offered a five per cent of fresh equity.

Power Finance Corp, which is engaged in financing the power projects, is likely to raise Rs 6,300 crore through the share sale programme.

Earlier, Minister of state for power Bharatsinha Solanki had informed Parliament in the last session that the board of Power Finance Corp has approved a proposal for a fresh issue of equity shares along with disinvestment, not exceeding the aggregate 20 per cent.

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

The government, which hopes to raise Rs 40,000 crore through disinvestment this fiscal, has already mopped up close to Rs 20,000 crore through divestment in PSUs Satluj Jal Vidyut Nigam, Engineers India, Coal India and PowerGrid.

Other stake sale programme in line are Hindustan Copper, SAIL, Oil Corporation and ONGC among others.