Oil secy hints at IOC, ONGC divestment

The government will look into the possibility of disinvestment in Oil and Natural Gas Corporation and Indian Oil Corporation in the current fiscal itself.

"The matter (IOC, ONGC disinvestment) will be considered in the course of the year," Oil Secretary S Sundareshan told reporters at a function in New Delhi.

However, disinvestment secretary Sumit Bose said right now there is nothing on the cards.

Aiming to raise Rs 40,000 crore (Rs 400 billion) through disinvestment this fiscal, so far, the government could mobilise only Rs 1,000 crore (Rs 10 billion) in Satluj Jal Vidyut Nigam.

Besides, the government expects to mop up Rs 977 crore (Rs 9.77 billion) from the 10 per cent disinvestment in the state-run Engineers India whose follow on public offer opened on Tuesday.

"We are hopeful to meet the Rs 40,000 crore disinvestment target," Bose said.

He further said divestment in PowerGrid, Coal India, Hindustan Copper, SAIL, Manganese Ore, is likely in the current fiscal. But this would not add up to Rs 40,000 crore so there could be more in the list selloff list for the current fiscal.

"As and when we will get the Cabinet approval for other companies, it would be communicated," Bose added.

Finance Minister Pranab Mukherjee had set a target of mobilising Rs 40,000 crore this fiscal from the divestment process to part fund the social sector investment and bridge the widening fiscal deficit.

Last fiscal the government had raised Rs 25,000 crore (Rs 250 billion) from divestment in Oil India, NHPC, NTPC, NMDC and REC.

As part of its five-year selloff roadmap, the Manmohan government has chalked out an ambitious disinvestment plan, under which it aims to bring down its holding to 75 per cent -- or a minimum public holding of 25 per cent in stages in all profit-making CPSUs.

That apart, the government has also identified over 60 units for possible divestment during these years.