The government would get a higher price for its stake at a later date as the company has several new projects on the cards, Singh felt. "NTPC has been performing well and already initiated a capacity enhancement plan. The company's outlook will further improve once the ongoing capacity addition programme is completed," he pointed out.

Singh said that the Disinvestment Commission was asked to look into the possibility of dilution in the government stake in NTPC. The commission was also of the view that the government should retain its stake in the power company.

Besides, NTPC was not short of funds forcapacity augmentation. In view of the comfortable debt:equity ratio of the company, it can easily raise additional funds from domestic and foreign agencies whenever needed, Singh said. NTPC has been accessing funds from the overseas market at an attractive rate.

The Centre, at one point of time, seriously considering disinvestment of it stake in NTPC as part of its overall policy to get out of the PSUs, secretary ministry of power VK Pandit has recently told The Financial Express. However, since the commission has not endorsed the move, the government will retain its equity the power venture, Pandit.

The largest power company in the country with an installed capacity of around 18,000 mw, NPTC now plans to increase it to 30,000 mw by 2007 and 40,000 mw by 2012. NTPC is also setting up several major power projects. The thermal power major also plans to enter into hydel power generation.

Commenting on the progress of capacity enhancement programme, Singh said the company may even achieve the targetbefore the deadline.

NTPC has diversified into related areas by forging alliance with Indian and foreign companies. It has a joint venture with the BSES, the Mumbai-based power company, to undertake turnkey equipment procurement and construction works for power plants. The joint venture -- Utility Powertech -- has already been awarded projects from parent companies.

NTPC has recently set up a 50:50 joint venture with ABB of Germany to undertake renovation and modernisation (R&M) projects. R&M is most economical and fast route to increase generation capacity, said Singh. NTPC took over some of the underutilised government-owned power plants in various states which are now generating full capacity, he said.The joint venture, he said, will also concentrate on the new R&M proposals to be invited by states.

The company has also proposed to pick up equity in Petronet LNG, the venture jointly floated by oil companies. However, the government has yet to approve the move. "This is an strategic investment as NTPCcould also be a client of the oil company," Singh said referring to the proposal of picking up a stake in Petronet LNG.

On the diversification plans of the company, the NTPC chief said: "We want to concentrate on our core competency." NTPC is a power generating company and has no plan to get into transmission or distribution area, he pointed out.