A Rs250 Billion SPV to Carve Out DISCO Liabilities for Sale

On 28 July 2026 the Privatisation Commission Board recommended that the Cabinet Committee on Privatisation approve restructuring plans and schemes of arrangement for FESCO, GEPCO and IESCO, the first batch of distribution companies up for sale. The plans are built on the three companies' audited accounts for the period ended 31 March 2026. The original invitation for expressions of interest, issued in May, set deadlines of 7 July for FESCO, 6 August for GEPCO and 7 September for IESCO.

The commission is offering 51 to 100 per cent of each company with management control, and charges a processing fee of USD 5,000 per expression of interest per DISCO. We think the SPV is the right tool and the wrong place to be vague. The remaining DISCOs in the south and west carry far higher losses and will not attract this kind of interest.