The Finance Ministry today said the NTPC follow-on public offer has been rejected as under the present disinvestment policy government stake in a navratna company cannot be sold.
Last week, Minister of State for Power Jairam Ramesh had said that there was a proposal by NTPC to approach capital market through an FPO but the Finance Ministry has rejected it.
Notably, the Power Ministry had approached the department of disinvestment in the Finance Ministry in August 2007 for approval of the FPO that could fetch the company nearly Rs 6,000 crore to part finance the expansion programme.
After the FPO, government shareholding in NTPC would have come down to 84.75 per cent from the present level of 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 diluting government's stake.
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