The government is planning to divest up to 25 per cent stake in Tehri Hydro Development Corporation (THDC) this fiscal, which could fetch the exchequer around Rs 1,300 crore.

“The Power Ministry has given its approval for initial public offering of THDC. A cabinet note has been circulated for the same,” Mr Mohammad Haleem Khan, Secretary in the Department of Disinvestment (DoD) told PTI.

THDC, a 75:25 joint venture between the Centre 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 company is in the process of amending its Memorandum of Association as the existing one cannot apply to the new public-private-partnership model, before it approaches the market regulator SEBI for clearance.

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 Detail of Project Reports (DPR), construction of such power stations and projects, generation, transmission and distribution of power.

The government has set a target of Rs 30,000 crore from disinvestment of central public sector undertakings in the current fiscal.

With three months of the fiscal almost over, the DoD would have to kick start the disinvestment programme soon to garner resources in the remaining months of the fiscal.

As against the disinvestment target of Rs 40,000 crore in 2011-12, the government could raise only Rs 14,000 crore through PSU stake sales.

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