Cabinet approves five percent disinvestment in NTPC

New Delhi, Oct 19 (ANI): The Cabinet Committee on Economic Affairs (CCEA) today gave its approval for disinvestment of five percent paid up equity capital of National thermal Power Corporation (NTPC), out of Government's shareholding, in the domestic market through book building process.

Commerce and Industry Minister Anand Sharma said that part of the disinvestment in both the cases would be offered to the employees of the two public sector companies.

After this disinvestments the Government shareholding in the company would come down to 84.50 percent.

NTPC Limited is engaged in the business of power generation. Government of India is holding 89.50 percent equity in the company and the balance is held by the general public.

The shares of the company are listed on the stock exchanges in the market.

On disinvestment of the proposed equity, it is expected that the market capitalisation of NTPC would be higher and it would help the company to raise resources in the international market on competitive terms.

The shares would be owned by the public and thus the objective of people-ownership in the public sector would also be achieved. (ANI)