Stop further disinvestment in NTPC

Stop further disinvestment in NTPC

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Petition to
Prime Minister of India and

Why this petition matters

Started by Sudhir Kumar Sahu

Impact of Disinvestment of NTPC

NTPC Limited is an Indian public Sector Undertaking, engaged in the business of generation of electricity and allied services. It was founded by Govt. of India in 1975, which now holds 54.74% of its equity shares after disinvestments in (2004,2010,2013,2014,2016 & 2017)

01. The Govt. will forego dividends on the equity holding by selling off its stake.
Apaert from generating a one time sale amount , a lot of these stake sales have also resulted in higher annual revenues for the government.

02. Approx less than 1% of Indian household invest in equity. So if public offer route is followed it would implytransferring the common ownership of the PSU by all Indian to Private ownership of less than 1% of Indian.
03. Using funds made available from disinvestment to bridge the fiscal deficit is an unhealthy and a short term practice. It is said that it is equivalent of selling “family silver”to meet short term monetary requirement.
04. Effective tax rate of CPSE are much higher than Private sector compnies. So there is an annual loss for govt in terms of Tax Income.
05. NTPC is a Profit Making PSU and its performance from last 2 decade is at top in Power sector. NTPC is far better than any private company of power sector.
06. After disinvestment employees of NTPC will lose job.  NTPC is creating job opportunities for unemployed ma npower.
07. Privatisation of NTPC may lead complete monopoly of Private palyers in Power sector. This may change counties power scenario, per unit cost may increases which leads extra burden to common man.
08. After Disinvestment NTPC will not act as MAHARATNA PSU.

Impact on Economic Growth

NTPC is the most efficient and environmental friendly power producer of the country. Operating anf financial parameter shows that NTPC is at the top of India’s power sector. It diversified its business as per govt. policies and market scenario. After disinvestment of NTPC there is no hold of Govt. over NTPC. Countries economic growth may adversely affect and it will slow down all sectors. In 2008-10 private players are generating at PLF >85% but when they seen huge investment and low return in power sector (coal based generation), private players PLF reduces to 55% lower than countries average PLF.  This shows that when there is monopoly in power sector that may lead poor economy growth in country.

Impact on Indian Power Sector

Indian power sector has three different sectors (State/ Central/Private). In Central Sector NTPC, NHPC and NPCIL are the CPSE which are generating electricity with different sources. NTPC has approx. 70% of central sector’s capacity which balances the private and state sector. Disinvestment of the NTPC will drastically impact on Power Scenario of the country.

Impact on Society

Minimum Wages to contract labour

CSR Budget Utilisation

NTPC is the country’s largest power producer. It operates plant with efficiently and environmental friendly manner from last 02 decades. NTPC’s CSR initiatives impact socially all over India. NTPC will contribute in near future to achieve Govt. targets and play active role in Govt mission “Power to All”. NTPC is a strategic PSU which is important for country’s sovereignty, safety and economic growth. NTPC paid Approx. INR 4500 Crores of dividends in subsequent years in past and will pay more in near future.

If Disinvestment of NTPC take place it will be the worse decision taken by this Government.

7,239 have signed. Let’s get to 7,500!