Diesel pricing not linked to firms' stake sale: Montek
New Delhi   12-Nov-2010

Plans to sell stake in India's top state-run energy firms are not linked to freeing up of diesel pricing, planning Commission deputy chairman Montek singh Ahluwalia said on Thursday. The government plans to sell stakes in IOC and ONGC ONGC in the last quarter of this fiscal year ending in March, a source directly involved in the stake sale programme, said. Analysts have said delay in a decision on deregulation of diesel prices and sharing of subsidies could discourage investors in IndianOil and ONGC. But Ahluwalia said the sale of the stakes and deregulation were not related. "That linkage is not actually being drawn," he said." We must progressively deregulate. There is no deadline." What has kept the government from freeing up diesel pricing is stubbornly high inflation that could result in voter backlash against the ruling Congress party in a season of state elections.