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State-Owned Power Majors Consider Listing EESL as They Weigh Exit Options
Dec 26, 2025
Energy Efficiency Services Ltd. (EESL), a loss-making joint venture of India’s leading state-owned power companies, may soon test investor appetite through a public listing as its promoters explore exit options from the enterprise, according to people familiar with the matter.
EESL is jointly owned by NTPC Ltd, Power Finance Corporation (PFC), Rural Electrification Corporation (REC), and Power Grid Corporation of India. The Maharatna power firms are evaluating a stock market listing as part of a broader strategy to divest from the company that has played a central role in implementing India’s energy efficiency programmes.
Discussions around the proposed listing are at an early stage and may involve an offer-for-sale by the promoters, one of the people cited above said. A public listing is being viewed as a more viable route compared with a strategic sale or private placement of shares, given the company’s current financial position.
EESL has been grappling with mounting receivables from state governments and public agencies under flagship energy efficiency initiatives, including the National Street Lighting Programme. According to officials, outstanding dues are close to Rs 4,000 crore, while the company’s annual report shows receivables of Rs 4,315 crore as of the end of FY24.
In its FY24 annual report, EESL flagged that persistent delays in payments from government departments, urban local bodies, and power distribution companies have placed severe pressure on its cash flows. The strain has also limited the company’s ability to expand into new business segments, even as it continues to service operational and maintenance commitments under existing projects.
EESL was set up to drive large-scale adoption of energy-efficient technologies and support India’s climate commitments. However, high borrowings and weak collections have weighed on its financial performance, prompting its government-owned promoters to reassess their long-term involvement.
A listing, if pursued, would mark a significant shift in the ownership and future direction of one of India’s most prominent energy efficiency institutions, while also testing market interest in a public-sector-led clean energy services model.