Govt not to sell 5% PFC stake, but IPO to go ahead

The Prime Minister's Office (PMO) has asked the power ministry not to go ahead with the sale of 5% government stake in Power Finance Corporation (PFC), senior government officials said.

The power ministry would now have to draft a fresh cabinet note for the IPO. When contacted, power ministry sources said the process has already been initiated for getting fresh cabinet approval.

Before the disinvestment process was halted due to opposition from supporting Left parties and DMK, the UPA government had decided to sell 5% shares in the market as part of the disinvestment.

The company had even filed the draft prospectus with Securities and Exchange Board of India (Sebi), which approved the proposal on July 16.