Govt considers selling 5% stake in ONGC: source

Tags: Companies
The government will decide next month whether to sell a 5% stake in state-run Oil and Natural Gas Corp, a senior oil ministry official said, in a deal that would be worth $2.9 billion at current market prices.

If completed, the sale would raise nearly a third of the target for privatisation revenues announced last week in Prime Minister Narendra Modi's first budget, which seeks to curb the fiscal deficit and nurse the weak economy back to health.

"The department of divestment has floated a note seeking our comments for a 5% stake sale in ONGC," the official, who had direct knowledge of the matter, told Reuters on Tuesday. He added that a decision would be taken in August.

An official at the finance ministry, which houses the divestment department, said the government was interested in selling stakes in ONGC and other state companies given their high market valuations. He did not elaborate.

EDITORIAL OF THE DAY

  • The government must only sell PSU stocks that are in demand

    The government’s move to change the methodology of selecting merchant bankers for divesting stake in various public sector undertakings would save d

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

BK Chaturvedi

Delhi and its democratic core

In the last one month, questions have been raised about ...

Kuruvilla Pandikattu SJ

Moral basis for collective living

Laudato si (Praise Be to You”) the second circular letter ...

Dharmendra Khandal

Have you spotted those wasps, yet?

Wasps are insects that ride on the monsoon winds. I ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture