New Delhi, Aug 05: Disinvestment commission today recommended sale of 49 per cent government equity in Power Finance Corporation (PFC) to a minority partner. In its latest report, the commission said the development finance organisation should continue to remain within the government fold for some more time while inducting a minority partner with 49 per cent stake along with a say in management of the company.

The commission also favoured privatisation of Water And Power Consultancy Services (Wapcos) along with National Film Development Corporation.

The panel which enjoys a mandate to look into the role of promotional organisations like India trade promotion organisation is yet to commence work on the same.
It also suggested some changes, including induction of independent directors on the lines of Naresh Chandra Committee and R H Patil Committee set up by Reserve Bank of India.

The report said that PFC should engage only in financing of power sector assets on commercial terms based on techno-economic considerations.

Spreading of risk beyond power sector and taking state government guarantees should not be encouraged, it said.

Bureau Report