India approves 10 percent stake sale in IOC to state companies

NEW DELHI (Reuters) - A panel of ministers has approved sale of a 10 percent stake in state refiner Indian Oil Corp through a block deal on the stock exchanges, Oil Minister Veerappa Moily said on Thursday.

State exploration firms Oil and Natural Gas Corp Ltd and Oil India Ltd will buy the stake, Oil Secretary Vivek Rae said.

The transaction is likely "within the next week or so," Rae said.

Apart from IOC, the government has been pushing for the sale of a 5 percent stake in miner Coal India as part of its plan to raise $6.4 billion through stake sales in state firms this fiscal year, but disagreements among ministries and a depreciation in the rupee have stymied the efforts.

 

So far this fiscal year, the government has only raised around $500 million through stake sales.

(Reporting by Rajesh Kumar Singh; editing by Malini Menon)