The Cabinet Committee on Economic Affairs (CCEA) today cleared a proposal to disinvest 17 percent of paid up capital for Follow-on Public Offering- FPO of State-owned Power Grid Corporation of India. Power Minister Jyotiraditya Scindia told reporters after the CCEA meeting that the FPO includes 13 per cent fresh equity by the public sector company and 4 per cent stake sale by the government.

Additional resources generated through the issue of the FPO will be utilized by Power Grid in its investment programmes. The FPO will help in raising funds of the order of 5,600 crore rupees to meet its investment programme for the next two financial years.