New Delhi, Sept. 6: The oil ministry has approved the plans to sell of a part of the government’s stake in Oil and Natural Gas Corp (ONGC) and Indian Oil Crop (IOC). A partial disinvestment of these companies could fetch about Rs 24,000 crore for the Centre this fiscal.
The government has set a target to raise Rs 40,000 crore this fiscal through disinvestment of the PSUs.
According to the oil secretary, Mr S. Sundareshan, the government will divest 10 per cent in Indian Oil Corporation (IOC) and five per cent in ONGC.
The government has 74 per cent stake in ONGC and 79 per cent stake in Indian Oil.
However, IOC would be the first to be disinvested, PTI said quoting an oil ministry official.
Alongside the 10 per cent government stake sale, the company will offer a follow-on public offer (FPO) of its 10 per cent expanded equity to raise close to `9,000 crore for part-financing its capital expenditure.
ONGC follow-on offer would follow IOC’s. But before its FPO, the company may issue bonus shares and split stock, the official said.
“The oil ministry has taken an in-principle decision, we have to go to the Cabinet,” said the secretary.
The oil minister, Mr Murli Deora, had for more than two weeks held back his consent to the finance ministry’s proposal to include ONGC and IOC in the list of PSUs slated for disinvestment this fiscal.