Cabinet Committee on Economic Affairs approved 9.5 percent Stake Disinvestment in NTPC

The Cabinet Committee on Economic Affairs (CCEA) approved the disinvestment of 9.5 percent Government Stake in the Maharatna PSU-National Thermal Power Corporation (NTPC) on 22 November 2012 from its holding of 84.50 percent. The disinvestment would be done through the stock exchanges following the SEBI Rules, via an offer for sales of the shares.

The equity disinvestment of NTPC would bring back a sum of about 13000 crore rupees. With this disinvestment the governments holding on NTPC would fall down from present 84.5 percent to 75 percent, which will adhere to the minimum public shareholding norms that was stipulated by the Securities and Exchange Board of India (SEBI), the market regulators. The recorded paid-up equity capital of NTPC on of 31 March 2012 under administrative control of the Ministry of Power was 8245.46 crore rupees.

NTPC
NTPC-the National Thermal Power Corporation is a Public Service Undertaking Company engaged in power generation that came into existence in the year 1975 to accelerate the rate of power generation in India. In the Forbes Global 2000 ranking list of the World’s biggest companies NTPC was ranked at 337th position in 2012. At present NTPCs generating capacity is 39674 MW and by 2032 it is expected that the company would have a capacity of 128000 MW.