10% of Gail, ONGC stock to be sold to the public

Govt decided to sell 10% of its equity in the two PSUs through domestic issues.

Faced with the prospect of a major shortfall in its disinvestment target, the Union government on Tuesday decided to sell 10 per cent of its equity in the Oil and Natural Gas Corporation (ONGC) and gas transmission monopoly Gail (India) through domestic issues that will be open to the public. It hopes to raise Rs 11,500 crore at the current market rates.

HT Image

The decision comes a week after the Cabinet’s green light to remove cross-holding among ONGC, GAIL and Indian Oil.

Disinvestment Minister Arun Shourie said the sale would be completed by March.

To expedite the process, a committee comprising Shourie, Finance Minister Jaswant Singh, Petroleum Minister Ram Naik and Law Minister Arun Jaitley will begin work to identify advisors from Wednesday.

Shourie admitted the decision to offload equity was prompted by a possible shortfall in revenue.

Gail (India) closed at Rs 208.65 on the Bombay Stock Exchange on Tuesday and ONGC at Rs 738.50.