NHPC buyback to kick off govt’s backdoor disinvestment

The government is pulling out all the stops to make the red lines drawn on fiscal and current account deficits work.

NHPC’s buyback plan is a move in this direction.

Now, the company has come out with a Rs 1,600 crore buyback plan, which, according to a PTI report citing source, is aimed at improving the value of company’s share in the market.

This is a sort of backdoor divestment as the government will also get a chance to tender its shares to the company.

With market conditions unlikely to improve in the near future, it will be difficult for the government to meet its Rs 40,000 crore disinvestment target for the year, a Reuters report said yesterday.