Govt mulls selling $2.6 billion NHPC stake to state-run peer NTPC Ltd

The sale will boost NTPC's green portfolio as the predominantly coal-burning generator makes a gradual shift away from fossil fuels

India’s ministries of finance and power are discussing a plan to sell government’s stake in hydro-power producer NHPC Ltd. to its state-run peer NTPC Ltd., the nation’s biggest electricity generator by capacity, according to people familiar with the matter.

The government’s 73.67 per cent stake in NHPC is worth about Rs 182 billion ($2.6 billion) as per current prices, according to Bloomberg calculations. 

Talks are at an initial stage and a deal is unlikely to be concluded this fiscal year, although the government plans to complete some formalities before March, the people said. NHPC surged as much as 9.7 per cent before