Top
Millennium Post

Govt to throw away 10% IOC stake, 5% of NTPC

Govt to throw away 10% IOC stake, 5% of NTPC
X
The Union Cabinet on Wednesday approved proposals to divest its 5 per cent stake in state-owned NTPC and 10 per cent in Indian Oil Corporation (IOC), which may fetch the government over Rs 13,000 crore at current market price. “The Cabinet has approved 5 per cent disinvestment in NTPC and 10 per cent in Indian Oil Corporation (IOC),” a source said after the Cabinet meeting here.

According to BSE data, the market capitalisation of NTPC stood at Rs 1,11,313.77 crore while that of IOC was Rs 79,321.21 crore as of on Wednesday. The proposed share sale of 5 per cent in NTPC would fetch the government Rs 5,565 crore while that of 10 per cent in IOC would bring in Rs 7,932 crore. Thus, the stake sale in both companies would help the government mop up over Rs 13,000 crore. 

The government holds 74.96 per cent in NTPC and 68.57 per cent in IOC, according to the BSE data. The government has budgeted to raise Rs 41,000 crore through PSU stake sale in the current fiscal and another Rs 28,500 crore through strategic stake sales. NTPC was trading down 4.28 per cent at Rs 135.45 and IOC fell 1.79 per cent to Rs 326.85 at noon. 

Shares of NTPC and IOC on Wednesday saw selling pressure following reports that the Cabinet approved proposals to divest its stake in both. NTPC’s stock fell 5 per cent to Rs 134.30 on BSE. Selling was seen in IOC, which shed 2.62 per cent at Rs 324.05. “The Cabinet has approved 5 per cent disinvestment in NTPC and 10 per cent in Indian Oil Corporation,” a source said. According to BSE data, the market capitalisation of NTPC stood at Rs 1,11,313.77 crore while that of IOC was Rs 79,321.21 crore as of Wednesday. 

GAIL & IndianOil sign pact to join Adani Group’s <g data-gr-id="139">Dhamra</g> LNG project
State-run gas utility GAIL India Ltd and refiner Indian Oil Corp (IOC) on Wednesday signed an initial pact to join Adani Group-promoted Rs 5,000-crore <g data-gr-id="141">Dhamra</g> LNG project in Odisha. The agreement comes within weeks of GAIL dropping plans to set up a floating LNG import terminal at Paradip. IOC too had in 2012 signed a MoU with <g data-gr-id="142">Dhamra</g> LNG Port Corp Ltd (DPCL) to develop a liquefied natural gas (LNG) terminal at the port. 

Two firms on Wednesday signed a memorandum of understanding (MoU) with <g data-gr-id="147">Dhamra</g> LNG Terminal Pvt Ltd, a company owned by Adani Enterprises, for setting up of 5 million tonnes a year LNG import terminal, GAIL said in a press statement here. Sources said GAIL and IOC may hold half the stake in the project while the remaining may be with Adani. <g data-gr-id="148">Dhamra</g> will be the sixth LNG project announced on the east coast. While GAIL has dropped plans of a four million tonnes project at Paradip, Petronet LNG Ltd -- a firm in which GAIL and IOC are promoters -- has put on cold-storage plans to set up a five million tonnes a year LNG import facility at Gangavaram in Andhra Pradesh. GAIL, along with GdF and Shell, has proposed a 3.5 million tonnes floating LNG terminal at Kakinada while IOC plans a five million tonnes facility at Ennore in Tamil Nadu. 

Real estate player Hiranandani Group plans to set up a Rs 2,400 crore, 4 million tonnes floating LNG import terminal off Haldia in West Bengal. With GAIL, which owns and operates bulk of the nation’s cross country pipelines, and IOC, which is a big user of gas and will need the fuel at its just commissioned Paradip refinery, joining <g data-gr-id="149">Dhamra</g>, the fate of LNG terminals in Andhra Pradesh is uncertain. <g data-gr-id="150">Dhamra</g> can meet all of the demand in Odisha and Andhra Pradesh. Dhamra port in Bhadrak district of Odisha is an all-weather deep water port, the GAIL statement elaborated. 
Next Story
Share it