Himachal stake in Satluj Jal Vidyut Nigam marginally raised ahead of divestment

The Cabinet Committee on Economic Affairs (CCEA) today approved an enhancement of the equity stake of the government of Himachal Pradesh in Satluj Jal Vidyut Nigam Limited (SJVNL) from 25 per cent to 25.50 per cent.

Accordingly, the state government will be issued 2,78,12,500 equity shares at book value of Rs14.72 per share as of 31 March 2009, for a value of Rs40.94 crore, a government release said today.

The CCEA also decided to increase the offer for disinvestment in SJVNL from 410.9 million shares of a total value of Rs410.88 crore to 415 million shares of a value of Rs415 crore. The approval has been taken to ensure successful disinvestment of GOI's stake in SJVN Limited, the release said.

The CCEA, at its meeting held in October 2009, had approved the disinvestment of 10 per cent paid-up equity in SJVNL out of GOI's shareholding of 75 per cent.

SJVN Limited, a Mini-Ratna, Schedule-A company, is a joint venture between the Government of India and the government of Himachal Pradesh.

It was incorporated in May 1988 to plan, promote, investigate, organise, execute, operate and maintain hydroelectric power projects in the river Satluj basin in Himachal Pradesh in general and to execute 1500 MW Nathpa Jhakri hydroelectric project (NJHEP) in particular.

 Subsequently, its areas of operation has been extended beyond the river Satluj basin to other states/countries like Manipur, Nepal, Bhutan, etc.