Govt rejects NTPC follow- up public offer

New Delhi, May 19 (UNI) The Finance Ministry today clarifed the reasons for it rejecting the NTPC's follow-on public offer proposal, saying that the government's policy does not permit disinvestment by government in a 'Navratna' company.

The Ministry's clarification came in response to a news report with the caption 'Finance Ministry rejects NTPC follow-on public offer proposal,' which appeared in a section of the press yesterday.

The Finance Ministry said the proposal involved disinvestment of 4.75 per cent equity of NTPC out of Government's shareholding.

NTPC is a 'Navaratna' company.

"Since the present policy does not envisage disinvestment by Government in a 'Navaratna' company, the Ministry of Finance did not agree to the proposal," an official release said here.

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