Power companies feel divestment may increase cost of borrowings

New Delhi: NTPCNSE -1.59 % Ltd, Power GridNSE -1.66 % Corporation of India (PGCIL) and Power Finance CorporationNSE 0.30 % (PFC) have conveyed their concerns on the government’s proposal to reduce stake to below 51%.

The companies have told the ministry of power that reducing government shareholding below 51% may not go down well with existing investors, particularly foreign lenders, according to people in the know.