UPA kickstarts divestment with NHPC IPO on August 7

NHPC chairman S K Garg today issued the disinvestment timetable,declaring the sale of 168 crore shares at Rs 30-36 per share as an initial public offering to be completed by August 11.

It is expected that the government will soon announce a timeline for divesting its share holding in OIL as well,which has requisite approvals for the same. The government plans to off-load 10 per cent equity in the oil company. An announcement is expected before September 15.

Todays announcement on the NHPC could be the first in a string of disinvestment in PSUs with names of as many as seven companies being considered for divestment in sectors including coal and mines. If all these proposals go through,it may be possible for the government to reach at least half the target suggested by the Economic Survey.

The formal decision of the disinvestment in NHPC shares came even as the CAG announced that NHPC failed to add capacity under the 10th Plan,missing 100 per cent of its 652 mega watt addition target during the five year plan.