OPGC disinvestment: Odisha govt starts process to divest 49% stake

January 17, 2023 Business, Government

Bhubaneswar: The Odisha government has initiated the process of disinvesting 49 per cent stake in Odisha Power Generation Corporation (OPGC).
The Government has invited Expression of Interests (EOIs) from Interested Bidders (IBs) for purchase of 49% shareholding of Government of Odisha in OPGC.

SBI Capital Markets Limited (SBICAP) is acting as Transaction Advisor for the process.

OPGC was incorporated on November 14, 1984 with the main objective of establishing, operating & maintaining thermal power generating stations.

OPGC operates state of the art thermal power plants of 1740 MW capacity at Banharpali, Jharsuguda, Odisha. The Phase I units (2x210MW) have been running successfully for more than 25 years. The Phase II units (2x660MW) were commissioned in 2019, said a notification.

Phase I units have coal linkage from the nearby mines of Mahanadi Coalfields Limited (Coal India subsidiary) and Phase II units are sourcing coal from Manoharpur Coal Mine of Odisha Coal & Power Limited (OCPL), a subsidiary company of OPGC through dedicated Merry Go Round (MGR) system.

OPGC is contemplating expansion of
its present capacity through implementation of Phase III by installing Units 5 & 6 having capacity of 660 MW each, the notification read.

OCPL has extractable reserve of 636 Million Metric Tonnes (MMT) and its peak rated capacity is 16 MMT per year, which is sufficient to meet the requirement of 4×660 MW units for more than 40 years.

Common infrastructure, land for expansion of plant and the MGR system are in the possession of OPGC.

OPGC is 100% owned by Govt. of Odisha. Govt. of Odisha proposes to undertake disinvestment of 49% of its stake in OPGC in favour of a technically and financially capable entity (Government / Private) having established track record of operating thermal power plants.

The Share Holders Agreement (SHA)
would have provisions to protect the interest of the minority investor.
The Disinvestment shall be completed in a two-stage process.