Cabinet set to clear NTPC selloff today

The Cabinet is expected to clear a plan on Thursday to disinvest a 9.5% stake in state-controlled NTPC Ltd., HT reports.

The Cabinet is expected to clear a plan on Thursday to disinvest a 9.5% stake in state-controlled NTPC Ltd.

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The finance ministry is pinning hopes on this big ticket disinvestment as this single stake sale is expected to fetch close to Rs. 13,000 to Rs. 14,000 crore, which is almost 50% of the Rs. 30,000-crore disinvestments target set by the ministry for 2012-13.

The government holds 84.5% stake in India’s largest power generating company.

The finance ministry is going ahead with the disinvestment despite the company as well as the power ministry opposing it initially. Government sources said finance minister P Chidambaram had overruled concerns.

The power ministry had opposed any immediate sale on grounds that the current stock price of NTPC at Rs. 166 a share was too low.