Govt. to broadbase PTC equity structure

By Our Special Correspondent

NEW DELHI, AUG. 13. The Centre is planning to broad-base the equity structure of the newly created Power Trading Corporation (PTC). However, the proposed broad-basing leaves out the State governments from holding any equity in the organisation which is primarily engaged in transferring electricity from one State to another for sale.

Also, the initial proposals of the Central public sector undertakings (CPSUs) holding 60 per cent share in the Rs. 150 crore equity of PTC is likely to be re-worked.

Initially the equity base of Rs. 150 crores of PTI was to come as contribution from CPSUs and financial institutions. As per that proposal, the Powergrid Corporation was to contribute 30 per cent and the National Thermal Power Corporation (NTPC) and Power Finance Corporation 15 per cent each. The balance 40 per cent was to come from financial institutions for which PTC has already started informal consultations. Some institutions like ICICI, the IDBI and the LIC are reported to have indicated willingness to consider the issue.

However, the fresh proposal under consideration of the Government alters the proportions substantially. The equity base of PTC has been pegged at Rs. 200 crores in which the Union Ministry of Power will hold 10 per cent share. The share of the CPSUs has been reduced to 20 per cent while the financial institutions will hold another 30 per cent. The balance 40 per cent will be offered to various other organisations including commercial banks and other financial institutions.

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Section  : Business
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