Oil India, ONGC to buy IOC stake at 220/share - source

NEW DELHI (Reuters) - State explorer Oil and Natural Gas Corp (ONGC) and Oil India will pay 220 rupees a share for their proposed 10 percent stake buy in state refiner Indian Oil Corp (IOC), a government source said.

ONGC and Oil India are likely to buy the stake next week, the source said on Thursday.

In January, a panel of ministers approved the 10 percent stake sale in IOC to help the cash-strapped government raise funds to narrow its budget deficit.

(Reporting by Nidhi Verma; editing by Malini Menon)