GoM To Discuss ONGC, BHEL Share Sales On Wednesday

A Group of Ministers headed by Finance Minister Pranab Mukherjee is slated to meet on Wednesday to consider selling 5 per cent government stake in ONGC to raise about Rs 12,000 crore. Divestment in Bharat Heavy ElectricalsLtd will also be considered.

"The GoM is to meet tomorrow to consider proposals relating to disinvestment in Oil and Natural Gas Corp (ONGC)," Oil Minister S Jaipal Reddy told reporters in Gurgaon.

The GoM had earlier this month postponed a decision on the mode of selling stake in ONGC and it will meet on Thursday to consider 5 per cent stake sale in the nation's biggest energy explorer to raise about Rs 12,000 crore.

"This may perhaps be the last (GoM meeting) before Budget (for 2012-13 is presented in Parliament on march 16)," he said.

Reddy, however, refused to hazard a guess on the GoM decision. "I cannot anticipate what the GoM will decide."

The government had in November last year put on hold a proposal to sell 5 per cent of its stake in ONGC through a public offering.

"Auction involves very little paperwork and the whole process can be done very quickly," a source said.

Capital market regulator Securities and Exchange Board of India (Sebi) had recently announced rules for the sale of shares through auctions to institutional investors.

The government owns 74.14 per cent stake in ONGC and plans to sell 427.77 million shares, which will trim its holding to 69.14 per cent.

(Agencies)