Government may pare stake in Indian Oil to below 51%: Report
The Centre may bring its stake in Indian Oil Corporation (IOC) to below 51 percent, according to a report in Bloomberg. The Cabinet is expected to discuss the matter next week.
Currently, the government owns a 51.5 percent stake in the country’s largest oil refiner, with another 25.9 percent ownership via Life Insurance Corporation (LIC) of India, Oil and Natural Gas Corporation (ONGC) and Oil India Limited, the report said.
However, the government can continue to have indirect control even after selling as much as a 26.4 percent stake in the entity.
In her Budget speech earlier this year, Finance Minister Nirmala Sitharaman announced the government’s plan to lower its stake in some state-run entities. Soon after, it announced some probable candidates where the government holding may be brought down- IOC, ONGC, NTPC Limited and GAIL India Limited.
The government’s disinvestment target for the current financial year is Rs 1.05 lakh crore. Earlier in October, reports also suggested that the Centre may consider cutting its stake in the state-owned Bharat Heavy Electricals Limited (BHEL) and National Mineral Development Corporation (NMDC).Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.