Shirish Nadkarni
OGJ Correspondent
MUMBAI, Nov. 17 -- The Indian government is racing against time to fulfill its disinvestment program target of 135 billion rupees ($2.97 billion US) before the fiscal year ends Mar. 31, 2004.
Analysts estimate that the combined anticipated offerings in exploration major Oil & Natural Gas Corp. (ONGC) and refiner Indian Oil Corp. (IOC) could total as much as 100 billion rupees. If that happens, it would be the first time that the divestiture target has been met.
The government probably will sell 5% of its equity holding in ONGC and 20% of its stake in IOC, analysts said.
Generally, public offerings take at least 3 months so the Indian government must reach a decision by mid-December if the goal is to be met this fiscal year.
Meanwhine, an Oct. 14 Supreme Court ruling has delayed the divestiture of state-owned equity equity in refiners Hindustan Petroleum Ltd. and Bharat Petroleum Corp. Ltd.
An Act of Parliment established those two companies, so the Supreme Court said any equity sale must be approved by the Lower House of Parliament.