(ET)
NTPC Ltd, Power Grid Corporation of India (PGCIL) and Power Finance Corporation (PFC) have conveyed their concerns on the government’s proposal to reduce stake to below 51per cent.The companies have told the ministry of power that reducing government shareholding below 51per cent may not go down well with existing investors, particularly foreign lenders, according to people in the know. Currently, the government holds 54per cent in NTPC, 54.96per cent in PGCIL and 56per cent in PFC. In case of NTPC and Power Grid Corp, government shareholding will fall to 51per cent as the Centre plans one round of divestment within this financial year through the exchange-traded funds (ETF) route, the people cited above said. Government stake in PFC is expected to fall to 42per cent after the merger of its subsidiary, REC Ltd, with Power Finance Corporation.
