State-run Oil India is on the government's radar for disinvestment in the current fiscal and discussions are currently on to work out the modalities of a further public offer of the PSU, sources said.
"Negotiations are currently on [between the disinvestment department and the Petroleum Ministry] to work out the details through further stake sale. They will have to work out on what is their capital requirements," official sources said.
Oil India, the country's second largest oil exploration company, which had earlier hit the market with an initial public offer in September 2009 mopped up over Rs 4,900 crore. As part of the IPO, the government offloaded its 10% equity, while company issued 11% fresh equity.
Besides Oil India, the government has already identified RINL, MMTC and NBCC for stake sale and would be required to add more companies to the list to achieve Rs 40,000 crore target during 2011-12, sources said.
The Cabinet has so far given approval for the disinvestment of four state-run firms -- PFC , SAIL, ONGC and HCL, expecting to garner a little over Rs 15,000 crore through follow -on offers of the identified four PSUs.
The government has already raised Rs 1,162 crore by divesting five% stake in Power Finance Corporation in May. The follow-on public offer of SAIL is likely to hit the market next month and ONGC in July. Share sale programme of Hindustan Copper (HCL) is yet to take a concrete shape.
The government had proposed a disinvestment target of Rs 95,000 crore from sale of shares in public sector companies over the next three fiscals, including Rs 40,000 crore in the current fiscal.
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Against the same Rs 40,000 crore target set for the last fiscal, the government is estimated to have raised only Rs 22,400 crore by way of disinvestment in PSU companies. The gap could have been bridged a little more had the movement of the market not been topsy-turvy towards the end of the last fiscal.
Currently, the total receipts stands at Rs 99,738.92 crore from the government's various disinvestment programmes, ever since they begun in the financial year 1991-92, as per the data available with the Department of Disinvestment.
The government's disinvestment policy states that the government has to retain majority shareholding of at least 51% and management control of the PSUs.
The policy also calls for listing of unlisted CPSEs with no accumulated losses and having earned net profit in three preceding consecutive years.