The Indian government has announced its plan to divest a 10% share in state-run hydroelectric power company Tehri Hydro Development Corporation (THDC) India Ltd in an effort to raise US$91 million this fiscal year, HydroWorld.com has learned.
The initial public offering is part of the government's plan to raise a cumulative $7.3 billion from selling shares in THDC and other state-owned companies through the current fiscal year. Doing so will allow the India to lower its budget deficit to 4.8% its gross domestic product from 5.2% in the previous year.
THDC was established by the Indian government in 1988 to construct 1,000-MW Tehri Stage 1 hydroelectric project on the Bhagirathi River. The company has since expanded its hydel fleet to include the 400-MW Koteshwar project and has a number of plants in the development stage, including a 1,000 MW pumped-storage project to be constructed as part of the Tehri Dam complex.
The government said it is fast-tracking the sale process, but that the proposal must be approved by India's federal cabinet first.
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