NTPC to acquire stake in SJVN, HP govt expresses reservation in transaction

State-run NTPC is likely to acquire the Central government's stake in SJVN Ltd, but the Himachal Pradesh government has expressed some reservations relating to this transaction, an official said.

At the current market price, the sale of 63.79 per cent stake in SJVN would fetch the Centre about Rs 6,700 crore.

SJVN is a joint venture between the Centre and the Himachal Pradesh government, with a joint holding of 90.63 per cent.

At the end of September, Centre held 63.79 per cent stake in SJVN, while HP Government held 26.85 per cent.

An official said the discussions are going on for the purchase of Centre's stake in SJVN, but Himachal Pradesh government has some concerns.

"We are looking at NTPC acquiring Centre's share in SJVN. The matter is stuck because of resistance from Himachal Pradesh government. We are discussing it," the official said.

If the acquisition goes through, this would be the third such transaction amongst Central Public Sector Undertaking (CPSEs).

In January, ONGC bought government's entire 51.11 per cent stake in oil refiner HPCL for Rs 36,915 crore. On Thursday, the Cabinet cleared PFC buying 52.63 per cent stake in REC, for an estimated Rs 15,000 crore.

Shares of SJVN were trading at Rs 26.40, down 1.12 per cent, while NTPC scrip was quoting 0.86 per cent lower at Rs 137.95 over the previous close on the BSE.

The government has already mopped up over Rs 32,000 crore from CPSE disinvestment so far in the current fiscal. The budget target has been set at Rs 80,000 crore.

(With inputs from agencies.)