Ministry proposes offloading 15-20% stake in IOC
New Delhi: The ministry of petroleum and natural gas has proposed offloading 15-to-20-per cent of the government equity in Indian Oil Corporation (IOC) to counter the proposal of splitting IOC into two separate entities. The Cabinet Committee on Disinvestment (CCD) had earlier discussed a proposal to bifurcate IOC into separate refining and marketing companies.

CCD had also proposed that the new marketing entity of IOC be sold to a strategic investor while the refining division be merged with that of HPCL/BPCL. Top government sources were quoted as saying that IOC has already been asked by Petroleum Minister Ram Naik to work out options for selling the government equity to the extent of 15 to 20 per cent in the company. The government presently holds a 82-per cent equity stake in IOC and a 20-per cent sale of the government equity in IOC should fetch it anywhere between Rs 8,000-8,500 crore.
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