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    Govt mulling cutting stake in IOC to below 51%

    Synopsis

    Indian Oil is the third oil company in which it is thinking of cutting stakes.

    ET Now

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    NEW DELHI: The government may cut its stake to below 51 per cent in the Indian Oil Corporation, ET NOW reported quoting agencies.

    ET Now in a report said the government is looking to become a minority shareholder in the company. It currently hold 51.5 per cent in the oil major.

    The stock closed 2.32 per cent higher at Rs 136.95 on BSE.

    Central government has been on a divestment spree and is considering to cut stake in a number of companies. Indian Oil is the third oil company in which it is thinking of cutting stakes.

    State-owned oil and gas explorer ONGC is looking to sell its stake in recently-acquired refiner HPCL to a strategic investor, possibly an overseas oil company, to regain debt-free status of the company existing prior to the expensive buy.

    The plan for Hindustan Petroleum Corporation Ltd (HPCL) follows the government's go ahead to invite a strategic investor for Bharat Petroleum Corporation Ltd (BPCL) where the Centre owns 53 per cent stake.

    The divestment is important from the fiscal math perspective. India's fiscal deficit at the halfway mark in 2019-20 stood at 92.6% of budgeted estimates, lower than 95.3% in April-September, 2018-19, helped by transfers from the RBI. With muted tax revenues, the government will have to undertake spending cuts and divest to achieve FY20 fiscal target of 3.3 per cent of GDP, say economists.
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    21 Comments on this Story

    Nage G309 days ago
    If stake/ownership of such national companies transferred to private entities, it will be nothing but a new form of the then East India Company and the citizens may again have to fight for movement for freedom of companies of India. Hence it should be given a serious thought.
    Nirmal Kanti Deb311 days ago
    Oil sector is the backbone of a nation, If we sell all these to private parties, what will happen in time of war like situation in the country.Private party may refuse to sale the product to our national security institutions like Army, Navy & Air Force. What will the future of the nation than ?
    My request to government is to look into the matter seriously.
    Nation first, Joi Hind, Joy Bharat.
    PS312 days ago
    Better sell the banks first to Ambani & Adani. Then with the money they can buy BPCL, HPCL ,IOC .They can pay the salaries of all govt officials and run the govt too .They can buy the country too if Govt wants to sell.
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