Power Trading Corporation has approached the Centre to expand its equity base to Rs 350 crore from the present Rs 24 crore. In a presentation before the power ministry today, the corporation also sought permission to approach financial institutions and the markets for raising capital through private placements and a public offering.
As a first step, the corporation is planning to approach financial institutions to raise about Rs 16 crore as equity. The trading utility plans to restrict the exposure of public sector undertakings to 30 per cent of its total enhanced equity base of Rs 350 crore, which it hopes to reach by 2006. Along with the present equity holders -- National Thermal Power Corporation, Power Finance Corporation and PowerGrid Corporation -- the trading outfit has also asked National Hydroelectric Power Corporation to pick up a stake, it said in the presentation. It had already started negotiations with financial institutions and banks for private placement of shares, officials said. With the long-pending proposal of recapitalisation of Power Trading Corporation failing to come through, the power ministry plans to limit its exposure in individual projects, so that a major expansion in the company
