India to sell stake in state owned Power Grid

Tuesday, Jul 27, 2010

The Indian government last Thursday approved the sale of 20% of the Power Grid Corp, its largest electricity transmission company, in a public float estimated at US$1.8B. The sale of the listed state-controlled company could take place within 3 months.

New Delhi is planning to sell stakes in a number of state-owned companies in the coming months to help it reduce one of the widest fiscal deficits for 20 yrs. These include Indian Oil, the Steel Authority of India and Coal India.

The Congress party-led government hopes to raise US$8.5B in this current fiscal year from the sale of state assets and accelerate partial privatization.

Thursday’s cabinet decision allowed the sale of 10% of the state’s existing holding in the power transmission company and the issue of an additional 10% in equity, the Power Ministry said.

Analysts identify the Power Sector as one of the most appealing to investors as India tries to build up its infrastructure.—Paul A. Ebeling, Jnr.   www.livetradingnews.com

Source: Live Trading News