Wall Street Journal Asia 20 September 2012
NEW DELHI — India plans to sell a 9.5% stake in state-run NTPC Ltd. to raise as much as 131 billion rupees ($2.41 billion) as part of its program to cut the fiscal deficit, even as the utility is opposed to a share sale amid slackening power sector growth and its impact on power sector stocks.
A senior finance ministry official said Thursday, that the proposal to sell the stake in the country’s largest power generator by capacity is part of its divestment program for this fiscal year.
“Our proposal will now go for inter-ministerial consultation and then to the cabinet committee on economic affairs,” the official said.
The Indian government held a 84.50% stake in NTPC as of June 30.
Faced with a ballooning fiscal deficit, the government is looking at all options to raise funds. It intends to raise 300 billion rupees from share sales in certain state-run companies this fiscal year through March.
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