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Govt mulls disinvestment in ONGC, BHEL: reports

India Infoline News Service / 18:04 , Feb 13, 2012

According to reports, the exact amount of disinvestment and the price would be decided by the EGoM, which is headed by Finance Minister Pranab Mukherjee.

The Government is reportedly planning disinvestment of ONGC and BHEL through the auction route to raise about Rs 145bn by the end of the current fiscal year. 

The decision on stake sale is likely to be taken at a meeting of the Empowered Group of Ministers (EGoM) on February 15, according to reports.

While the Government expects to raise Rs 120bn through the ONGC stake sale, the stake sale in BHEL might fetch the Centre about Rs 25bn.

According to reports, the exact amount of disinvestment and the price would be decided by the EGoM, which is headed by Finance Minister Pranab Mukherjee.

The Government proposes to sell 5% stake in ONGC through the auction route that allows promoters to dilute their stake in the company through a separate window on the BSE and the NSE. The sale has to be completed within a day.

The Government currently holds a 74.14% stake in ONGC. 

In case of BHEL, the Government is likely to offload 10% stake.

The Government had envisaged to raise Rs 400bn in the current fiscal year through PSU disinvestment, but it has only managed to mop up a measly Rs 11.45bn via the follow-on public offer of Power Finance Corp. (PFC).


 



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