Power Ministry pushes for IPOs of PFC, 3 others

With disinvestment on hold, the Power Ministry is now seeking approval for initial public offerings (IPOs) of Power Finance Corporation (PFC), National Hydroelectric Power Corporation (NHPC), Rural Electrification Corporation (REC) and PowerGrid in the current fiscal without offloading any government stake in the companies.

Power Minister Sushilkumar Shinde refused to give any timeframe for the IPOs. "The IPOs are in the process. It will take time. I cannot say if it will happen in this fiscal," Shinde said on the sidelines of a conference here today.

PFC, which had earlier received the Cabinet nod for an IPO of 10% along with 5% sale of government equity, is now likely to go for only fresh equity, official sources told PTI.

Sources said the Power Ministry has written to Cabinet Secretary B K Chaturvedi asking permission for PFC to go ahead with its initial public offer of 10%.

PFC had, in June this year, filed a draft prospectus with market regulator Sebi for the proposed IPO, but the issue was delayed after Prime Minister Manmohan Singh put on hold all disinvestment decisions.

The Power Ministry is also targeting to issue fresh equity of up to 24% in NHPC, REC and Power Grid Corporation of India.