Odisha govt likely to abandon stake sale in Odisha Power Generation
POWER & RENEWABLE ENERGY

Odisha govt likely to abandon stake sale in Odisha Power Generation

According to sources familiar with the matter, the Odisha government is expected to abandon its plans to sell 49 per cent of its stake in Odisha Power Generation Corporation, a thermal power producer.

Currently, the state government holds 100 per cent equity in the company, but in January, it had announced its intention to sell a 49 per cent stake. However, the sale process has received a lackluster response as potential buyers were more interested in acquiring a majority stake. With only 49 per cent of the stake on offer and the government retaining 51 per cent, bidders would not have complete control over the company's operations, explained a senior executive from a prominent consulting firm.

The decision to sell equity to private investors came two and a half years after the state government reacquired a 49 per cent stake from the US-based AES Corporation for Rs 10 billion. In August 2000, the Odisha government had exercised its right of first refusal to prevent Adani Power from acquiring AES' stake in the thermal power company, as per media reports. Adani Power had made an offer in June of the same year, but the Odisha government matched it and retained the stake.

The sources stated that senior officials from the state government have communicated this decision to their advisor, SBI Capital Markets. The state intends to resume the divestment process next year, and an official communication will be issued shortly. However, SBI Capital Markets did not respond to requests for comment as of the time of reporting.

When valuing distressed power companies for sale, lenders typically employ a standard benchmark of Rs 30 million per MW of generating capacity. Based on this benchmark, the value of this particular company amounts to Rs 52.30 billion.

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

According to sources familiar with the matter, the Odisha government is expected to abandon its plans to sell 49 per cent of its stake in Odisha Power Generation Corporation, a thermal power producer.Currently, the state government holds 100 per cent equity in the company, but in January, it had announced its intention to sell a 49 per cent stake. However, the sale process has received a lackluster response as potential buyers were more interested in acquiring a majority stake. With only 49 per cent of the stake on offer and the government retaining 51 per cent, bidders would not have complete control over the company's operations, explained a senior executive from a prominent consulting firm.The decision to sell equity to private investors came two and a half years after the state government reacquired a 49 per cent stake from the US-based AES Corporation for Rs 10 billion. In August 2000, the Odisha government had exercised its right of first refusal to prevent Adani Power from acquiring AES' stake in the thermal power company, as per media reports. Adani Power had made an offer in June of the same year, but the Odisha government matched it and retained the stake.The sources stated that senior officials from the state government have communicated this decision to their advisor, SBI Capital Markets. The state intends to resume the divestment process next year, and an official communication will be issued shortly. However, SBI Capital Markets did not respond to requests for comment as of the time of reporting.When valuing distressed power companies for sale, lenders typically employ a standard benchmark of Rs 30 million per MW of generating capacity. Based on this benchmark, the value of this particular company amounts to Rs 52.30 billion.

Next Story
Real Estate

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Next Story
Infrastructure Transport

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Next Story
Infrastructure Transport

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?