NHPC IPO to hit markets in August

The government on Monday said National Hydroelectric Power Corporation will hit the market with an initial public offering by August this year and it has assured the 'mini-ratna' status to the public sector unit.

"There will be no further delay in bringing the IPO as it is very critical for the success of the company... Four non-official directors have already been appointed and three more will be on the board soon," Minister of State for Power Jairam Ramesh told reporters in New Delhi.

The IPO, scheduled for last year, got delayed as the company had not appointed non-official directors on time, a condition mandatory for any company to float an IPO.

As per the guidelines of market regulator Sebi, 50 per cent of the board must be of non-official directors. The Ministry of Power has ensured mini-ratna status for NHPC.

"We must ensure that in 20 years the share of hydro power becomes 40 per cent from 25 per cent now," he said.

NHPC is setting up joint venture with the Jammu & Kashmir Power Development Corporation (JKPDC) for three power projects on Chenab -- Pakal Dul-100MW, Kiru-600MW, Kawar-520MW.

"Hydel power development is critical in Jammu & Kashmir and Arunachal Pradesh as they are politically sensitive," he added.

"We are trying to give the company a new lease of life. By the end of 2012 the installed capacity of NHPC would be doubled from the current capacity of 5,200 MW," he said.