IOC, ONGC divestment by Q4, to fetch Rs 19K cr: oil secy
Press Trust of India / Mumbai Sep 11, 2010, 19:16 IST
The Government expects to complete the ONGC and IOC divestments by the end of this fiscal and hopes to raise up to Rs 19,000 crore from the process.
"We plan to complete the (divestment) process before the end of the financial year...(hopefully) by the last quarter. Going by current market prices, we should raise up to Rs 18-19,000 crore," Oil Secretary S Sundareshan today told reporters here.
The government plans to sell 5 per cent stake in Oil and Natural Gas Corporation (ONGC) and 10 per cent in Indian Oil Corporation (IOC) through the follow-on public offer, he said.
In case of IOC, he added, an additional mop-up of around Rs 10,000 crore was expected as the country's largest oil marketer would be raising 10 per cent more equity.
The Oil Secretary said the government planned to go ahead with the IOC divestment followed by ONGC. The ministry has already asked IOC to scout for merchant banker for the issue, while that of ONGC is yet to be finalised.
"Merchant bankers for the IOC and ONGC issues will be appointed shortly and we will be working closely with the Ministry of Finance and Department of Disinvestment," Sundareshan said.
"IOC has huge requirement for money. It will be using the proceeds of the sale for the Rs 29,000-crore Paradeep refinery," he said.
The Government has set a target of raising Rs 40,000 crore through divestment in various companies in the current fiscal.
It has already completed stake sale in firms like Engineers India and Satluj Jal Vidyut Nigam, while Manganese Ore India, Steel Authority of India, Coal India and Hindustan Copper are on the cards.
Content Guide
