The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the disinvestment of five percent paid-up capital in the Oil and Natural Gas Corporation Ltd. (ONGC) out of the government's shareholding of 68.94 percent.
It is done through the Offer for Sale (OFS) method in the domestic market as per Securities and Exchange Board of India (SEBI) rules and regulations.
After this disinvestment, the government's shareholding in the company would come down to 63.94 percent and further broad base the shareholding of the company, enhancing the disinvestment receipts.
ONGC is a "Maharatna" public sector undertaking under the administrative control of the Ministry of Petroleum and Natural Gas. It was established in August 1956 to plan, promote, organize and implement programmes for development of petroleum resources and the production and sale of petroleum products by it.
The paid-up equity capital of the company, as on 31st March, 2014, is Rs 4,277 crore.
The President of India holds 68.94 percent of the paid-up capital in ONGC.