Oil PSU floats on track
Kolkata   22-Sep-2010

The divestment in state- owned energy majors IndianOil and Oil and Natural Gas Corporation and logistics firm Shipping Corporation of India are likely to come up before the cabinet this week.

The government plans to divest 5 per cent of its stake in ONGC and 10 per cent in IOC, which will also issue 10 per cent fresh equity in its follow on public offer. The government will divest 10 per cent in SCI, which will raise the same amount through fresh equity. “The ministry has an in-principle decision on IOC and ONGC stake sales. We plan to go to the cabinet for clearance this week,” a senior oil ministry official said.

IOC is the first on the divestment list, followed by ONGC. The government expects to raise Rs 20,000 crore from the sale of its stakes in these firms. The SCI stake sale may fetch close to Rs 1,400 crore.

The ONGC scrip was down 0.06 per cent to close at Rs 1,401.60 on the BSE, while IOC was down 0.79 per cent to close at Rs 437.35 on a day the sensex crossed 20000 points. SCI ended the day down 0.73 per cent at Rs 163.10.

Duo get miniratna status

The government today enhanced the financial autonomy of Calcutta-based Bridge and Roof Company and Allahabad-based Bharat Pumps and Compressors by granting them the miniratna status. Bridge and Roof has been granted category-I status and Bharat Pumps and Compressors has been placed under category- II.

Category-I firms have the power to spend up to Rs. 500 crore without government approval, while category-II firms have the autonomy to spend up to Rs. 250 crore.