NTPC gains on divestment plan; 3 subsidiaries to be listed

NEW DELHI: Shares of state-owned power heavyweight gained 1.1% in early Mumbai trading on Monday after the company said it has drawn up a Rs 15,000 crore disinvestment plan, which will include the listing of its subsidiaries NTPC Renewable Energy, North Eastern Electric Power Corporation and NTPC Vidyut Vyapar Nigam.

At 09:25 hours (IST), the NTPC scrip traded at Rs 141.45 on the National Stock Exchange, registering a gain of 1.1% from previous close.

According to reports, NTPC’s plan to meet its budgeted disinvestment target of Rs 15,000 crore, includes a stake sale in NTPC-SAIL Power Company. The share sale is expected to be carried out in the current financial year, reports said.

The listing of NTPC Renewable Energy is expected by October 2022, reports said. The company, which is wholly-owned subsidiary of NTPC, is currently running a portfolio of 3,450 megawatt, out of which 820 megawatt are under construction.

The company’s inclusion in exchanges has a significant bearing on its plan to have a renewable energy capacity of 60 GW by 2032.

This financial year, the government has set itself an ambitious disinvestment target of Rs 1.75 lakh crore. The success of this plan could go a long way in bridging the Centre’s fiscal deficit of 6.8% of GDP this year.