Government to sell 5 per cent in NTPC, 10 per cent in Satlaj Jal Vidyut Nigam
19 Oct 2009
The cabinet committee on economic affairs (CCEA) today gave its approval for disinvestment of 5 per cent equity stake in National Thermal Power Corporation Ltd (NTPC) and a 10 per cent stake in Satluj Jal Vidyut Nigam Limited (SJVNL).
The central government holds 89.50 per cent equity stake in NTPC Ltd and a 75 per cent equity stake in Satlaj Jal Vidyut Nigam Ltd.
The sale will be in the domestic market through book building process. After this disinvestment the government shareholding in NTPC would come down to 84.50 per cent.
Government of India holds 89.50 per cent equity in the company and the balance is held by the general public. The shares of the company are listed on the National and Bombay stock exchanges.
The disinvestment of the proposed equity is expected to raise the market capitalisation of NTPC and help the company to raise resources in the international market on competitive terms, the release said.
The public would own the shares and thus the objective of people-ownership in the public sector would also be achieved, it added.
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