Indian Government Considers Selling Stakes in IOC & ONGC

The Indian Government is considering selling its 20 per cent stake in Indian Oil Corp (IOC) and five per cent equity in Oil and Natural Gas Corp (ONGC) in domestic and overseas markets as a means to shore up its sagging revenues. The option does not include the sale of IOC's petrol stations.

Petroleum Secretary BK Chaturvedi and Disinvestment Secretary Dhirendra Singh will meet this week to develop the sale plan as part of efforts to meet the Rs 13,200 crore revenue generation target from disinvestment proceeds.

Sale of Government equity in the country largest firm, IOC and India's highest profit-making company ONGC are among the alternatives Petroleum Ministry has listed in its option paper prepared on instructions of the Cabinet Committee on Disinvestment.

The CCD had asked for options after stake sale in Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp Ltd (BPCL) ran into legal trouble.
The privatisation of HPCL and BPCL was halted by Supreme Court in September on ground that disinvestment in the two PSUs cannot take place without Parliamentary approval.

Chaturvedi said overseas equity sale in IOC and ONGC would not be possible in this fiscal year as listing requirements could not be fulfilled in the short period left. However domestic equity share offering should be possible.

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