Date:18/01/2005 URL: http://www.thehindubusinessline.com/2005/01/18/stories/2005011802350300.htm

Back Govt examining PFC's initial public offer proposal

Our Bureau

New Delhi , Jan. 17

THE Government is examining a proposal submitted by state-owned Power Finance Corporation (PFC) for an initial public offer (IPO), the Power Secretary, Mr R.V. Shahi, said on Monday. He, however, said there was no immediate plan to dilute Government stake in Power Grid Corporation of India Ltd (PGCIL).

"PFC has sent its proposal (for the IPO) to the Power Ministry. We are examining it," Mr Shahi told reporters on the sidelines of an international conference on power transmission here on Monday.

The Centre is, however, still to give a final nod to PFC for its public issue, Mr Shahi said. On the Government's plan to sell off stake in Power Grid, Mr Shahi said nothing was in the pipeline "immediately."

Power Finance Corporation has proposed an initial public offer of up to 10 per cent of its equity base, which currently stands at Rs 1,300-crore. At present, the Government wholly owns both PFC and PGCIL.