Finance Ministry rejects NTPC follow-on public offer proposal
May, 17th 2008
Company had plans to raise Rs 6,000 crore
The Finance Ministry has turned down power major NTPC Ltds proposal for a follow-on public offer, the Minister of State for Power, Mr Jairam Ramesh, said here on Thursday.
There was a proposal, but the Finance Ministry rejected it last week. It was for selling 4.75 per cent (Government) stake, Mr Ramesh told reporters on the sidelines of a conference here.
The Government currently holds 89.5 per cent in the utility.
The Power Ministry had approached the Department of Disinvestment in the Finance Ministry in August last year for approval of NTPCs FPO plans, which was estimated to raise up to Rs 6,000 crore to part-finance the companys expansion programme.
Following the issue, the Governments shareholding in NTPC was to come down to 84.75 per cent from 89.5 per cent. NTPC, in 2004, had raised Rs 5,386 crore through an initial public offering by way of raising fresh capital and also a dilution of Governments stake in the company.
Meanwhile, inaugurating a two-day Indo-German Symposium on Energy Efficiency, Mr Ramesh stressed on the need to develop energy efficiency and innovative building technologies in view of climate change and changing weather patterns.
Observing that India, with 17 per cent of the world population, accounted for only about 4.5 per cent of green house gas emissions, he said that there has to be greater use of coal if Indias economy is to grow at the rate of 8 per cent.
However, adoption of low carbon technologies, the Minister suggested, would be the way to the future.