The Cabinet is likely to consider a proposal to disinvest 9.50 per cent stake in state-run power major NTPC on Thursday. The Centre hopes to cut the fiscal deficit by stake sale in state-owned companies.
According to sources in the know, the government will clear sale of about 783.3 million shares, resulting in 9.5 per cent dilution in government stake in NTPC. Currently, the government holds about 84.5 per cent stake in the Maharatna company. Following the disinvestment, the government’s stake in NTPC would come down to 75 per cent.
Earlier this month, the government cleared a proposal to disinvest 10 per cent stake in defence equipment maker Hindustan Aeronautics Ltd (HAL). It had also cleared the proposal to disinvest Nalco, Hindustan Copper Ltd and MMTC along with a few more companies in its bid to earn Rs 30,000 crore revenue from selling stake in public sector undertakings in the current financial year. However, till date, disinvestment has not yielded any sum.
Shares of NTPC settled at Rs 167.80 on Tuesday, down 0.15 per cent from yesterday’s close on the Bombay Stock Exchange. A plan to approve models for attracting private investment in rail connectivity projects could also be discussed in the meeting.
The railway ministry has already identified more than a two dozen projects for providing first and last mile connectivity to coal, power and steel plants. These also include port connectivity projects.
The pricing formula for ethanol could also come up in the Cabinet meet.