New Delhi, Nov 06: Petroleum Minister Ram Naik has mooted sale of 12-15 per cent of government equity in oil refiner Indian Oil Corp and exploration giant Oil and Natural Gas Corp in capital markets to shore-up state finances. Government has been able to garner just about 10 per cent of the Rs 13,500 crore revenue target set from stake sale in state-run firms since big-ticket sell-offs like Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) got stuck due to a Supreme Court ruling.
"This (deficit in revenue receipts) is a concern for Finance Ministry as also the Disinvestment Ministry. Petroleum Ministry will extend all co-operation (in meeting the shortfall). One way can be to reduce some equity in IOC or ONGC or Gail," he told here.
He said 12-15 per cent equity in India's largest firm IOC or the country's highest profit-making company ONGC can be offloaded in the market.
The proposal, which is yet to be formally put up to the Cabinet, is besides the three options government is exploring in the wake of the apex court halting privatisation of HPCL and BPCL.
IOC too has proposed a mega overseas issue of 2 billion dollars (20 per cent equity) or buying government stake in HPCL to bridge the revenue deficit.
"We are yet to discuss the issue (of offloading shares of IOC or ONGC in capital market) in the Cabinet," Naik said.
Bureau Report