Govt told to divest 10% stake in OIL through public issue

The finance ministry had recommended that the government disinvest 10 per cent of its stake in the proposed initial public offer (IPO) of Oil India (OIL), a state-owned upstream company, said Petroleum Minister Murli Deora.

"The finance ministry has sent its recommendations and we are considering it," Deora said, adding, "We will now discuss it with our Left partners before we take a decision."

OIL is planning to offer 10 per cent of its expanded share base to the public and 1 per cent to its employees. The share offer to the public is expected to take place towards the end of the year, through which the company plans to raise around Rs 1,500 crore.

If the government disinvests 10 per cent stake, it will earn around Rs 1,500 crore.

The government had earlier taken the disinvestment route along with an IPO in the case of National Thermal Power Corporation and Power Finance Corporation. It plans to piggyback on the public offers of National Hydro Power Corporation and Power Grid Corporation as well.