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THDC, NEEPCO disinvestment: NTPC gets CCI nod to pick up govt stake

The CCI gave a nod to the disinvestment of government’s shares in state-run THDC India Limited and NEEPCO, allowing NTPC to proceed with the deal

THDC, NEEPCO disinvestment: NTPC gets CCI nod to pick up govt stake
THDC, NEEPCO disinvestment: NTPC gets CCI nod to pick up govt stake

New Delhi: In an order released on Monday, the CCI (Competition Commission of India) gave a nod to the disinvestment of government’s shares in state-run THDC India Limited and NEEPCO (North Eastern Electric Power Corporation Limited) on Monday, allowing NTPC to pick up the shares owned by the Centre. The strategic disinvestment of THDC and NEEPCO had got an “in-principle” approval from the Cabinet Committee on Economic Affairs in November 2019.

THDC, NEEPCO disinvestment: CCI allows NTPC Limited to take over

The THDC order said, “The Competition Commission of India (CCI) approves the acquisition of 74.50% of the issued and paid-up share capital of THDC India Limited (“THDC”/ “Target”) by NTPC Limited (“NTPC”/ “Acquirer”) from Government of India (“GoI”), under Section 31(1) of the Competition Act, 2002.”

In NEEPCO, the CCI allowed NTPC to take over 100 percent shares owned by the government. “The Competition Commission of India (CCI) approves the acquisition of 100% of the issued and paid-up share capital of North Eastern Electric Power Corporation (“NEEPCO”/ “Target”) by NTPC Limited (“NTPC”/ “Acquirer”) from Government of India (“GoI”), under Section 31(1) of the Competition Act, 2002,” the order said.

Deal will help govt fetch Rs 15,000 cr

The THDC, NEEPCO disinvestment is expected to fetch the government Rs 15,000 crore. The Centre has so far raised Rs 35,000 crore. The deal will take the total to Rs 50,000 crore. The government is looking to raise Rs 65,000 crore via disinvestment before March-end. It is hoping to raise the balance amount through minority stake sales. The government was initially looking to raise Rs 1.05 lakh crore through disinvestment, but had to trim down the target after two major strategic disinvestments — Air India and BPCL — got delayed. These two deals will now be wrapped up in the next financial year (FY2020-21) in which the government has set a massive target of Rs 2.1 lakh crore.

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