Power Ministry is awaiting procedural clearances related to re-allocation of three coal blocks to NTPC before moving ahead with the over Rs 12,000 crore disinvestment plan for the state-run utility.
New Delhi: Power Ministry is awaiting procedural clearances related to re-allocation of three coal blocks to NTPC before moving ahead with the over Rs 12,000 crore disinvestment plan for the state-run utility.
The government has decided to re-allocate three coal blocks - Chatti-Bariatu, Kerandari and Chatti-Bariatu (South) - to NTPC but all the necessary clearances are not in place.
"We will start preparations for the disinvestment only when the three coal blocks are re-allocated to NTPC. The re- allocation will help the company in getting better valuations at the time of disinvestment," a Power Ministry official said.
The issue is pending before the Law Ministry.
At a time when NTPC is grappling with fuel scarcity, the re-allocation will help boost the country's largest power producer's market valuation. It will also help government get higher returns from the share sale, the official said.
Earlier this month, Power Minister Jyotiraditya Scindia had said the coal blocks would be re-allocated to NTPC at the earliest.
The three blocks were taken back from NTPC by the Coal Ministry citing long delays by the power producer in developing them.
Faced with liquidity crunch, the government expects to garner more than Rs 12,000 crore from selling its 9.5 per cent stake in NTPC as part of the ambitious Rs 30,000 crore disinvestment programme for this fiscal.
On November 22, the Cabinet Committee on Economic Affairs had approved NTPC stake sale.
NTPC became public with its initial public offering hitting the market in 2004. Thereafter in 2009, the government further diluted its stake in the company through Follow-on Public Offer (FPO).
At present, the government holds 84.5 per cent stake in NTPC. The Maharatna company has an installed generation capacity of 39,674 MW.
So far in this financial year, the government has managed to raise over Rs 6,900 crore through disinvestments in PSUs. NMDC issue fetched Rs 6,000 crore, while stake sales in Hindustan Copper and NBCC raked in Rs 808 and Rs 154 crore, respectively.