The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Manmohan Singh resolved for disinvestment in two PSU power utilities, the National Thermal Power Corporation (NTPC) and Satluj Jal Vidyut Nigam Limited (SJVNL).
CCEA has approved 10% disinvestment in SJVNL out of the Government’s share of 75% and 5% of 89.5% stake in NTPC.
Under the present market conditions, the company would be able to mop up Rs. 8,500 crore through disinvestment. NTPC’s market capitalisation stands at Rs. 1,77,350 crore. The paid-up equity capital of SJVNL at present is Rs. 4,108.81 crore.
After disinvestment, the government’s holding in NTPC would come down to 84.5 per cent from 89.5 per cent. In SJVNL Centre’s shareholding in the company would come down to 65% and Himachal Pradesh government’s stake would remain same at 25%.