The Union Cabinet has cleared an initial public offer of 10 per cent of its equity in National Thermal Power Corporation to raise Rs 3,000 crore (Rs 30 billion), Power Secretary R V Shahi said on Thursday.

"NTPC should be ready for IPO in next 2-3 months," Shahi told reporters in New Delhi.

In a bid to enable NTPC to raise its generation capacity, government yesterday cleared the state-owned company's proposal to enhance its equity by Rs 400 crore (Rs 4 billion).

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This would allow NTPC to increase its paid-up capital by 5 per cent from the present level of Rs 8,000 crore (Rs 80 billion).

The enhancement of the company's equity has been necessitated to help it to fulfil its plans to add 20,000 MW of power generation capacity by 2012.

Divestment Minister Arun Shourie on Thursday also outlined the dates when the public issues, of the various public sector firms to be divested, will open.

Indian Petrochemicals Corporation Ltd and CMC issues will open on February 16, and close on February 24, while IBP and Dredging Corporation floats will open on February 26 and close on March 2.

The Gas Authority of India issue will open on March 13 and close on March 20, while the Oil and Natural Gas Corporation issue is slated for March 3 and will close on March 12.

Additional inputs: Agencies