Odisha to divest 49% stake in profit-making PSU
POWER & RENEWABLE ENERGY

Odisha to divest 49% stake in profit-making PSU

The Odisha government has started the process to sell its 49% ownership in the profitable PSU Odisha Power Generation Corporation (OPGC), which runs the 1,740 MW Banharpalli thermal power plant in the Jharsuguda district.

The action was taken just two years after the Odisha government opted to acquire back its 49% stake in OPGC from US-based AES Corporation Ltd.

The corporation, which purchased a 49% stake in OPGC in 1998, opted to sell its stake for $135 million in August 2020. The thermal power plant is currently 100% owned by the state government. The planned disinvestment in the PSU has been invited by the Odisha energy department, but no justification for the decision has been given. The department has also not made it clear how much money it will make after the disinvestment procedure.

The disinvestment will be carried out in two stages, with SBI Capital Markets Limited (SBICAP) acting as the transaction adviser.

OPGC, which was founded in November 1984, runs a modern, four-unit coal-fired power station. While two 210 MW units each have been in service for the past 25 years, the second phase of two 660 MW units each was added in 2019. The first two units receive coal through a subsidiary of OPGC from the neighbouring mines of Mahanadi Coalfields Limited, a division of Coal India Ltd. The last two units obtain coal from Manoharpur.

OPGC is considering expanding its current capacity through implementation of Phase III by constructing two more units with a capacity of 660 MW each, according to sources in the state energy department.

A number of officials questioned the state government's decision, even though the opposition parties have not yet responded to the Odisha government's decision to sell its stock in a PSU that is producing money.

The Odisha government has started the process to sell its 49% ownership in the profitable PSU Odisha Power Generation Corporation (OPGC), which runs the 1,740 MW Banharpalli thermal power plant in the Jharsuguda district. The action was taken just two years after the Odisha government opted to acquire back its 49% stake in OPGC from US-based AES Corporation Ltd. The corporation, which purchased a 49% stake in OPGC in 1998, opted to sell its stake for $135 million in August 2020. The thermal power plant is currently 100% owned by the state government. The planned disinvestment in the PSU has been invited by the Odisha energy department, but no justification for the decision has been given. The department has also not made it clear how much money it will make after the disinvestment procedure. The disinvestment will be carried out in two stages, with SBI Capital Markets Limited (SBICAP) acting as the transaction adviser. OPGC, which was founded in November 1984, runs a modern, four-unit coal-fired power station. While two 210 MW units each have been in service for the past 25 years, the second phase of two 660 MW units each was added in 2019. The first two units receive coal through a subsidiary of OPGC from the neighbouring mines of Mahanadi Coalfields Limited, a division of Coal India Ltd. The last two units obtain coal from Manoharpur. OPGC is considering expanding its current capacity through implementation of Phase III by constructing two more units with a capacity of 660 MW each, according to sources in the state energy department. A number of officials questioned the state government's decision, even though the opposition parties have not yet responded to the Odisha government's decision to sell its stock in a PSU that is producing money.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code