Government to sell 5 per cent equity in NTPC
13 Nov 2009
The government is planning to sell at least 5 per cent equity stake in National Thermal Power Corporation (NTPC), the country's largest power producer, to raise around Rs8,100 crore ($1.7 billion), divestment secretary Sunil Mitra said.
The central government, he said, also plans to sell stakes in Rural Electrification Corp and Satluj Jal Nigam (an unlisted company) in the current financial year (2009-10).
The government, which is trying to bridge its widening fiscal deficit, is focusing on sale of stake in state-owned companies - both via fresh issues as also follow-on public offers.
The government had recently announced plans to raise public shareholding in state-run enterprises to a minimum 10 per cent. The government also wanted all profit-making units in the state sector to go public.
The government has so far identified 50 unlisted public companies and 10 listed companies for stake sale, Mitra said, adding that the government expects to complete the 5 per cent NTPC stake sale by March 2010.
Mita said he was in talks with ministries of steel, coal and telecom to explore the possibility of stake sale in other major state-run enterprises such as SAIL, Coal India and BSNL.
