To be called SAIL Power Supply Company, the entity would have up to 49 per cent stake of selected partner and will be operating SAIL's existing power plants in the eastern region, corporation sources told PTI here today.

National Power International Ltd of United Ctric Power Asia Ltd of the United States and PSEG India Ltd are the three other companies shortlisted for the purpose. In a bid to optimise its resources and efficiency, SAIL had initially decided to sell off its 542 mw power plants in the region, but later opted for floating a subsidiary with majority stake, the sources said. SAIL had recently invited offers from both Indian and overseas power companies to operate the plants for which it was willing to give up to 49 per cent equity with pricing to be worked out by thecorporation.

By offering 49% stake in the subsidiary company, SAIL is expecting to mop up between Rs 300 to 350 crore, the sources said adding that the process was likely to be completed within the current financial year. Earlier SAIL had rejected an offer from National Thermalpower Corporation (NTPC) to outrightly purchase its 542 mw captive power plants.

NTPC had offered to buy SAIL's power plants in the eastern region on their book value, SAIL sources said. Under no circumstances SAIL would lower plant status and the entire power generated by the proposed subsidiary would beused by SAIL, they said.