The government plans to sell 10 per cent of its stake in Oil India Limited (OIL) to state-run refiners, when the public sector exploration company launches an initial public offer (IPO).
Right now government owns 98 per cent stake in OIL and the rest two per cent is owned by the employees of the company. A senior official from the petroleum ministry said that out of the 10 per cent, the government will sell five per cent to Indian Oil Corporation and 2.5 per cent stake each to Bharat Petroleum and Hindustan Petroleum.
The government plans to sell another 10 per cent of the stake through the IPO and one per cent to the employees. The official said that the IPO will be launched in February next year and through this disinvestment the government hopes to generate Rs 1,000 to Rs 15,000 crores. The common man will also benefit from this disinvestment as the cash generated will go to the government to pay for spending on social projects such as schools and hospitals.
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