20% GSPC stake to be sold

The Gujarat government plans to dilute up to 20 per cent stake in its wholly owned Gujarat State Petroleum Corporation (GSPC).

"We are planning to offer GSPC's stake to the Indian public," Narendra Modi, chief minister of Gujarat, said while dedicating the KG#8 well to the people of Gujarat and the nation.

GSPC will plan for an initial public offering (IPO) in the next six months depending upon the amount of investments required for exploration. The corporation is to be listed on Bombay Stock Exchange and the National Stock Exchange. It is planning to appoint consultants for the entire process.

"All depends upon the amount of investment to be made in the near future for exploration activities. If we get a good price, the Gujarat government may dilute its stake in the corporation (GSPC)," Saurabh Dalal, minister of state for energy and petrochemicals said on Sunday.

"First we will assess our investments and the amount required for transmission of gas to Gujarat. Then we will decide on diluting the state government's stake in the corporation and offering it to the public," said D J Pandian, managing director, GSPC.

It may be recalled that the GoG had already started its ambitious programme of restructuring, privatising state public sector undertaking (PSUs) companies and had identified a dozen PSUs including GSPC to be divested in the first phase.