A Rs250 Billion SPV to Carve Out DISCO Liabilities for Sale

Business Recorder reported at the end of July 2026 that the Privatisation Commission Board had recommended Cabinet Committee approval of restructuring plans for FESCO, GEPCO, and IESCO, including a government-owned special purpose vehicle with authorised share capital of Rs 250 billion to carve out selected assets and liabilities. Carve-out SPVs are how governments make utility sales bankable when legacy liabilities would otherwise scare buyers. FESCO, GEPCO, and IESCO are relatively more attractive than high-loss southern and western DISCOs, which is why they lead. Investor interest reported around EOIs is encouraging only if qualification criteria emphasise operational capability, not only financial heft.