(a) whether the Government is considering to disinvest its shares in the Rural
Electrification Corporation, Power Grid Corporation and National Hydro Electrical
Power Corporation;
(b) if so, the details alongwith the reasons therefor; and
(c) the time by which a decision is likely to be taken in the matter?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (S.S. PALANIMANICKAM)
(a) to (c) Rural Electrification Corporation Limited, Power Grid Corporation of India Limited
and National Hydro-electric Power Corporation Limited propose to make public offerings of
equity equal to 10% each of their pre-issue paid-up equity capital. Government has decided
on 8lh February, 2007 to piggy-back with an `Offer for Sale` of 10%, 5% and 5%, respectively,
out of its shareholding. The proceeds from disinvestment of Government`s equity in these
three PSUs would be channelised into the National Investment Fund (NIF). 75% of the income
from the Fund will be used to finance selected social sector schemes, which promote education,
health and employment. The residual 25% of the income of NIF will be used to meet the capital
investment requirements of profitable and revivable PSUs.