Centre to meet CMs over power sector challenges

New Delhi, Mar 16 (UNI) The Union Power Ministry will soon convene a Conference of Chief Ministers to discuss measures to meet the challenges in the power sector.

This was announced today by Power Minister Sushil Kumar Shinde in the Lok Sabha, in reply to a written question.

Replying to a question on Disinvestment in public sector power companies, Minister of State for Finance S S Palanimanickam said the Rural Electrification Corporation, Power Grid Corporation and National Hydro-electric Power Corporation had a proposal to make public offerings of equity equal to 10 per cent each of their pre-issue paid up equity capital.

The government has decided on February 8 this year an "Offer for Sale" of 10 per cent, five per cent and five per cent respectively, out of its shareholding in these three companies.

The proceeds from disinvestment of government's equity in the three PSUs would be channelised into the National Investment Fund.

While 75 per cent of the income from the fund will be used to finance selected social sector schemes, the residual 25 per cent of the income would be used to meet the capital investment requirements of profitable and revivable PSUs.

UNI