INSUBCONTINENT EXCLUSIVE:
Government can sell as much as 26.4% of its holding in Indian Oil and still retain indirect controlIndia plans to reduce its stake in Indian
knowledge of the matter said.Prime Minister Narendra Modi's cabinet will consider, as early as next week, a proposal to sell shares in
some companies, including Indian Oil, to below 51 per cent, the people said, asking not to be identified as the plan is not public
India directly holds 51.5 per cent in Indian Oil, and another 25.9 per cent through state-run Life Insurance Corp
of India, and explorers Oil - Natural Gas Corp
and Oil India Ltd.Sluggish revenue collections has left PM Modi's administration with little choice but to push ahead with a plan to raise
a record Rs 1.05 lakh crore ($14.6 billion) through asset sales in the financial year through March
A slippage will put the government's goal of capping its budget deficit at 3.3 per cent of gross domestic product at risk, and prompt
rating companies to put India's credit score on a path for a downgrade to junk.Government can sell as much as 26.4 per cent of its holding
in Indian Oil -- valued at about Rs 33,000 crore -- and still retain indirect control
Finance ministry spokesman Rajesh Malhotra could not be immediately reached for a comment.The South Asian nation is likely to start selling
shares in Indian Oil through an exchange-traded fund in January, according to the people
The ministers' panel is also expected to take up other crucial proposals such as privatization of Bharat Petroleum Corp., Shipping Corp
of India and Container Corp
of India, they said.Finance Minister Nirmala Sitharaman, in her budget speech, announced plan to lower direct holdings in some state-run
companies below 51 per cent on a "case-to-case basis." The government later identified the biggest energy companies such as Indian Oil,
as probable candidates for such reductions.Shares of Indian Oil surged more than 6 per cent, reversing losses
It ended 2.2 per cent higher at Rs 136.85 in Mumbai."This move will only benefit the government," said Deven Choksey, managing director of
Mumbai-based wealth manager and brokerage KR Choksey Shares and Securities Pvt
"This won't add any value for the retail investors or the company."Indian Oil, along with its unit Chennai Petroleum Corp., operates 11
refineries, controlling more than 35 per cent of the nation's total crude oil processing capacity
It's also India's biggest fuel retailer, owning about half the country's refilling stations.Get Breaking news, live coverage, and
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