Cabinet paves way for NHPC IPO

New Delhi, Oct 9 (UNI) The proposed initial public offer (IPO) of National Hydroelectric Power Corporation (NHPC) has been given the final nod from the government with the Cabinet Committee on Economic Affairs (CCEA) approving conversion of the company's Interest During Construction (IDC) of Rs 8.83 crore into equity.

''With this NHPC can now go for an IPO,'' Finance Minister P Chidambaram told reporters after the CCEA meeting.

The CCEA on December 8, 2006 approved the sale of up to 24 per cent equity in NHPC through fresh issue of shares.

The funds raised by the PSU would be used for financing establishment of large hydro electricity generation projects, whose potential is estimated at 50,000 mega watt. NHPC has a paid-up share capital of Rs 10,349 crore, while its authorised capital is pegged at Rs 15,000 crore.

UNI