Decision on NTPC divestment delayed

The government's decision to divest its stake in power PSU NTPC would be delayed as the Cabinet Committee on Economic Affairs could not meet on Thursday due to pre-occupation of key ministers.

The proposal to divest at least five per cent government's stake in the country's largest power generating firm, NTPC, was listed on the CCEA agenda for today's meeting.

However, it could not meet as Home Minister P Chidambaram and Finance Minister Pranab Mukherjee had other pressing engagements, official sources said.

The proposals are likely to come up in the CCEA's meeting next week, they said.

Secretary in the Power Ministry H S Brahma told PTI that with five per cent stake sale, the government's holding in NTPC would come down to 85 per cent. He clarified that there would be no fresh equity infusion but only the stake sale by the government.

However, he did not specify as to what specific route - follow-on offer or qualified institutional placement - would be adopted for the government disinvestment.

At the present valuation, the government may be able to raise over Rs 8,000 crore (Rs 80 billion) by divesting five per cent stake in the company, which generates over 30,000 MW. Its market capitalisation currently stands at Rs 1,72,000 crore (Rs 1720 billion).

Besides, as a part of its revamping plan, engineering PSU Andrew Yule & Company had been wanting to disinvest its stakes in Tide Water Oil and Dishergarh Power Supply Company Ltd.