**Summary:**
In response to Lok Sabha Unstarred Question No. 4684, addressed on August 21, 2025, regarding the merging of corporations under the Ministry of Jal Shakti, the Minister of State for Jal Shakti clarified the status of the National Project Construction Corporation (NPCC) and Water and Power Consultancy Services India Limited (WAPCOS). The government conducted a strategic disinvestment process, overseen by the Inter-Ministerial Group (IMG), Core Group of Secretaries on Disinvestment (CGD), and an empowered Alternative Mechanism at the Ministerial level. This process was supported by professional advice from a Transaction Adviser, Legal Adviser, and Asset Valuer, all appointed through a transparent, competitive process. In March 2019, WAPCOS acquired 98.89% of NPCC shares from the Government of India. Consequently, NPCC now functions as a subsidiary of WAPCOS, with both companies operating as separate legal entities safeguarding their respective interests. The Ministry asserts that the disinvestment was carried out transparently, adhering to established procedures and safeguarding the interests of all parties involved.
Key Entities Referenced
Ministry of Jal Shakti: A ministry in the Government of India, responsible for water resources and river development.
National Project Construction Corporation (NPCC): A Public Sector Enterprise (PSE) that was acquired by WAPCOS and became its subsidiary in March 2019.
Water and Power Consultancy Services India Limited (WAPCOS): A Public Sector Enterprise (PSE) that acquired NPCC in March 2019.
SHRI EATALA RAJENDER: Member of Parliament who raised a question in Lok Sabha regarding the merger of corporations.
SHRI HARENDRA SINGH MALIK: Member of Parliament who raised a question in Lok Sabha regarding the merger of corporations.
Lok Sabha: The lower house of the Parliament of India, where the question was raised.
Inter-Ministerial Group (IMG): A multi-layered decision making mechanism involving in Strategic disinvestment.
Core Group of Secretaries on Disinvestment (CGD): A multi-layered decision making mechanism involving in Strategic disinvestment.
GOVERNMENT OF INDIA
MINISTRY OF JAL SHAKTI
DEPARTMENT OF WATER RESOURCES, RIVER DEVELOPMENT & GANGA REJUVENATION
LOK SABHA
UNSTARRED QUESTION NO. 4684
ANSWERED ON 21.08.2025
MERGING OF CORPORATIONS AND ORGANISATIONS
4684. SHRI EATALA RAJENDER:
SHRI HARENDRA SINGH MALIK:
Will the Minister of JAL SHAKTI be pleased to state:
(a) whether the Government has merged various corporations and organisations under the Ministry
including the National Project Construction Corporation (NPCC) with Water and Power Consultancy
Services (India) Limited (WAPCOS) and allowed NPCC to continue as an independent entity or function
as a subsidiary of WAPCOS rather than being completely merged and if so, the details thereof;
(b) whether it is a violation of the merger rules of any Public Sector Enterprises;
(c) if so, the details thereof along with the corrective steps taken/proposed to be taken by the Government
in this regard;
(d) whether the Government has conducted a transparent financial and operational review before
implementing any such structural changes and if so, the details thereof; and
(e) whether the Government is ensuring that NPCC’s interests are safeguarded considering its profitable
track record and significant contributions to the Government revenue and has worked out potential
conflicts of interest in various tendering processes to find a positive resolution and if so, the details and
present status thereof?
ANSWER
THE MINISTER OF STATE FOR JAL SHAKTI
(SHRI RAJ BHUSHAN CHOUDHARY)
(a) to (e) The process of Strategic disinvestment was carried out in a transparent manner, through multi
layered decision making mechanism involving the Inter-Ministerial Group (IMG), Core Group of
Secretaries on Disinvestment (CGD) and the empowered Alternative Mechanism at the apex Ministerial
level. The transaction was supported by professional advice from experts such as the Transaction
Adviser, the Legal Adviser and the Asset Valuer, who were appointed through a transparent, competitive
process. Water and Power Consultancy Services(India) Limited (WAPCOS) acquired 98.89% shares of
National Project Construction Corporation Ltd. (NPCC) from Government of India in March, 2019.
Resultantly, NPCC has become a subsidiary company of WAPCOS. Both the Companies are functioning
as separate legal entities safeguarding their interests.
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