New Delhi: The power ministry is considering disinvesting a part of its stake in Tehri Hydro Development Corporation in this fiscal, sources said.

Tehri Hydro Development Corp (THDC), a 75:25 joint venture between the power ministry and Uttar Pradesh government, does not intend to raise any fresh equity through the initial public offering, which is expected by the end of the current fiscal (2012-13).

The IPO would only comprise disinvestment of the central government's stake in the hydro power producer, sources said.

"THDC has communicated this proposal to the state government (Uttar Pradesh) and Power Ministry in separate letters," a source in the know of development told.

However, the disinvestment process can only go forward after the company makes certain amendments to its Memorandum of Association as the existing one cannot apply to the new public-private-partnership model.

"It (THDC) is a 24-year-old company and therefore certain chnages are required in the Memorandum of Association of the company to initiate the process of disinvestment," the source said without divulging changes needed and the percentage of stake sale by the government.

The company's aim, as per the current Memorandum of Association, is to plan, promote and organise an integrated and efficient development of conventional, non-conventional or renewable sources of energy and River Valley Projects in India and abroad.

It also includes planning, investigation, research, design and preparation of preliminary, feasibility and Detailed of Project Reports, construction of such power stations and projects, generation, transmission and distribution of power.

(Agencies)

 

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