Three oil PSUs to unlock cross-holdings this fiscal

 Indian Oil Corporation, Oil and Natural Gas Corporation (ONGC) and Gail India Ltd will sell their cross-holdings in the secondary market in the current financial year.

 According to finance ministry officials, the sale, which will happen before the end of March, will enable the ministry to bolster the case for interim dividends paid by the public sector companies.

 Substantial funds will also accrue to the exchequer by way of tax on capital gains earned by these companies.

 The three state-owned oil firms are expected to rake in about Rs 14,000 crore by selling their cross-holdings in the secondary market.

 While Indian Oil holds 9.6 per cent in ONGC and 5 per cent in Gail, ONGC holds 10 per cent in Indian Oil and 5 per cent in Gail. Gail has a 2.4 per cent stake in ONGC.

 The unlocking of the cross-holdings is expected to yield about Rs 2,000 crore to ONGC, Rs 9,500 crore to IOC and Rs 2,200 crore to Gail.

 The firms had acquired each other