NTPC likely to buy Centre's stake in SJVN, discussions on with HP govt

Power company NTPC is likely to acquire the Central government's stake in SJVN,  an official said.

However, the acquisition deal is stuck because of resistance from the Himachal Pradesh (HP) government, the official added.

The transaction would fetch the exchequer aboutRs 67 billion at current market prices.

SJVN is a joint venture between central government and Himachal Pradesh government, with the Centre holding 63.79 per cent stake and the latter holding 26.85 per cent at the end of September.

"We are looking at NTPC acquiring Centre's share in SJVN. The matter is stuck because of resistance from Himachal Pradesh government. We are discussing it," the official said.

At the current market price, sale of 63.79 per cent stake in SJVN would fetch the Central government about Rs 67 billion.

The Cabinet on Thursday approved PFC buying the government's 52.63 per cent stake in REC. The transaction would fetch the government Rs 150 billion.

The government has already mopped up over Rs 320 billion from CPSE disinvestment in the current fiscal.