Sale of SJVNL would be a loss to Himachal Pradesh, says official

As part of its disinvestment drive, the central govt was planning to sell its stake in SJVN to NTPC.

Himachal Pradesh has turned down the Centre’s proposal to exit the Sutluj Jal Vidyut Nigam (SJVNL), citing that it will lead to loss to the people and the state government. 

This could hurt the disinvestment drive of the Centre, the target for which has been set at Rs 1.05 trillion for the current fiscal year. 

The state has informed the Centre that the status of SJVN, a joint venture of the state and central government, should not be disturbed in the interest of Himanchal Pradesh. The state has taken up the matter with the Prime Minister as well.

As part of its disinvestment drive, the central government was planning to sell its stake in SJVN to NTPC. NTPC had proposed to acquire 63.79 per cent stake of the Centre in SJVN. This would have likely fetched the Centre Rs 7,000 crore.

The state government holds a 26.85 per cent stake in SJVN, which owns and operates 2 GW of hydro power projects.

The discussions have been going on for more than two years now. Owing to lack of support from the state, the deal has been stuck. 
 

“The sentiments of the state of Himachal Pradesh and its people are greatly involved with SJVN. Also, it is currently a mini-Ratna PSU doing commendably well in operation and execution of projects,” said a state government official during his address at the state power ministers’ conference in Narmada.

Commenting further on NTPC, he said, “Purchasing a cherished asset may add to the profile of a buyer but the nation would not gain a mega watt of additional capacity, and on the other hand, it will result in loss to the people of the state." 

The BJP-ruled state also hit out at the Centre for taking a decision like this. "As such, any ex-parte decision on this issue will be unacceptable to the state,” he added. 

So far this year, the Centre has garnered Rs 12,357 crore in divestment proceeds, of which about Rs 11,000 crore has come from a follow-on offerings of CPSE ETF.

This means that with less than six and a half months remaining, the government has to garner around Rs 92,600 crore to meet its 2019-20 budgeted target of Rs 1.05 trillion.