| Ram Naik, minister of petroleum and natural gas, told mediapersons here yesterday that "disinvestment of government's 10 per cent equity each in ONGC and GAIL will be first and before March 31, 2004 followed by the sale of crossholding by oil companies." |
| He pointed out that "the basic purpose of selling crossholding equity is to raise money for future investments by these oil companies which would take place only in phases." |
| The government has decided to disinvest 10 per cent equity of the ONGC (government holding 84 per cent ) and GAIL (67 per cent government stake) which have paid up capital of Rs 1,426 crore and Rs 846 crore, respectively. |
| The minister was addressing an interactive meeting on 'Challenges and opportunities before petroleum and natural gas sector," organised by the Indian Merchants' Chamber. |
| He said "the market price per share of ONGC which was Rs 162.34 in 1999 rose to Rs 734 as on December 24. Similarly, market price of GAIL share of Rs 60 in 1999 went upto Rs 219 in December 2003. At these rates, 10 per cent disinvestment of ONGC and GAIL may fetch more than Rs 12,000 crore." |
| On the disinvestment of Indian Oil Corporation, Naik said the ministry has already submitted "factual status paper on IOC to the ministry of disinvestment". |
| The government will also announce the fifth round of the New Exploration Licensing Policy (NELP) and third round of Coal-Bed Methane (CBM) by April 2004. |
| In the past four years, government has already alotted 91 blocks which has resulted in nine discoveries. |
| Besides the state-owned ONGC's redevelopment of Mumbai High has resulted in four per cent extra production of oil and nine per cent extra production of gas in 2003-04. |
| "The value of this four per cent extra oil production is over Rs 1,000 crore," Naik claimed. |
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