The government has sought details from National Thermal Power Corporation for its proposed public offer for increasing equity by up to five per cent, for which NTPC will file prospectus with the Securities and exchange Board of India in September.

According to highly placed sources, NTPC's domestic issue through an Initial Public Offer would be followed by an overseas issue for enhancing the equity by a similar amount.

With networth of over Rs 31,000 crore (Rs 310 billion) and equity base of Rs 8000 crore (Rs 80 billion), the corporation is optimistic of selling shares of Rs 10 each with a premium of about Rs 30 in the domestic market.

NTPC submitted all these details to the ministry of power recently officials said adding a Cabinet note in this regard was likely to be moved soon.

NTPC has also sought government permission for creating a different class of shares whereby the public shareholders would be considered for higher rate of returns than what is being given to the government.

If the proposal to create a special class of shares is cleared, NTPC would become the first corporation both in public as well as private sector to do so, officials said adding with this the government's interest would continue to be maintained with regard to dividend payment.

The ministry of power has agreed in principle to NTPC's proposed IPO but the ministry of finance is yet to give its nod, sources said.

On the issue of enhancing just five per cent equity, which is Rs 400 crore (Rs 4 billion), against the Sebi stipulation of 10 per cent, sources said the corporation would be approaching Sebi separately seeking relaxation in this clause.

NTPC has set an ambitious target of doubling power generation capacity and becoming a 40,000-mw plus company by 2012 and the proceeds from the IPO would be utilised for making investments in the new projects.

The corporation will be incurring a capital expenditure of Rs 4,500 crore (Rs 45 billion) for the current financial year.

Officials said a capacity of 4,800 mw was currently under implementation while eight new projects with a total capacity of 8,200 mw have been given techno-economic clearance by the Central Electricity Authority.