Disinvestment:The Union Govt. likely to sell 10 % stake in IOC this fiscal Year
Recently,the Department of Disinvestment (DoD) has circulated a draft
note for the consideration of the Cabinet Committee on Economic Affairs (CCEA)
for sale of 10 % out of government's 68.57 % stake in Indian Oil Corporation.
It sought comments on the proposal from Petroleum Ministry
as well as Departments of Expenditure, Public Enterprises and Economic Affairs.
The plan to sell 24.27 crore equity shares in IOC was mooted
after big-ticket disinvestment in Oil and Natural Gas Corp (ONGC) got stuck in
Finance Minister Arun Jaitley had discussed possible
disinvestment candidates in oil sector, other than ONGC, with Petroleum
Minister Dharmendra Pradhan on January 8.
Government was to sell 5 % of its stake in the country’s biggest
oil and gas producer ONGC to raise Rs 17,000-18,000 crore.
However, the double impact of tumbling global oil prices and
the rising subsidy burden has left the ONGC stock battered. It has slipped from
Rs. 472 in June last year to Rs. 343.85 (at close of market on Wednesday).
At current price, the government will get no more than Rs.
In 2014-15, the government has sold 5 % stake in steel major
SAIL to garner Rs. 1,700 crore.
It is racing against time to meet its disinvestment target
of Rs. 43,425 crore for this fiscal.
Blue-chip companies like ONGC, NHPC and Coal India had been
lined up for disinvestment.