New Delhi: After the mega-merger of PFC and REC, the Modi 2.0 govt has already zeroed in on a big Rs 8,000 Cr merger in the power sector that could not be executed last fiscal. 

The merger involves two companies promoted by the centre – NTPC, and the Himachal Pradesh-headquartered SJVN. This merger was last year blocked by the state government of Himachal Pradesh, that owns over 26% in the target company.

The merger plan is back on table and the government is keen to get it through in as soon as its first 100 days, sources from DIPAM and power ministry told ET Now. "We are actively engaging with Himachal Pradesh with new terms of the deal and plan to carry out the merger in a manner that is acceptable to the state," one of the sources said.

The mega-merger will also help the government in its divestment target for the ongoing fiscal. The disinvestment target for FY20 was set at Rs 90,000 crore during the interim Budget compared with Rs 80,000 crore in FY19.

Currently, NTPC holds a total power generation capacity of around 53 gigawatt (GW) and the merger of SJVN into it could help NTPC to boost its non-coal thermal power production portfolio.

The Government of Himachal Pradesh holds a share of 26.85 per cent in the SJVN with the centre holding 63.79 per cent stake