The Union Cabinet is widely expected to give a green signal to 9.5 per cent stake sale in state-run NTPC this Thursday.

In case the Cabinet approves the proposal, it will play a crucial role in rejuvenating the government's delayed stake sales initiative, which aims to garner Rs 30,000 crore for the exchequer during the current financial year.

The proposed 9.5 per cent stake sale in NTPC alone is expected to garnet up to Rs 13,000 crore for the government. To dilute its 9.5 per cent stake in NTPC, the government will offer around 78.33 crore shares in the company for purchase.

Presently, the government owns 84.5 per cent stake in NTPC. Following the disinvestment, its stake would drop to 75 per cent.

The Congress led-UPA government at the centre is trying to slash the soaring fiscal deficit by selling its stakes in public sector companies. The department of disinvestment under the finance ministry has already gained Cabinet's approval for disinvestment in OIL, MMTC, NMDC, Nalco, SAIL, RINL, BHEL and Hindustan Copper Ltd.

For the previous financial year, power generation giant NTPC had reported a net profit of Rs 9,223.7 crore, up from Rs 9,102.6 crore in financial year of 2010-11.

NTPC shares closed at Rs 167.80 apiece on the Bombay Stock Exchange on Tuesday, down 0.15 per cent from the previous day's closing price.