Tuesday, February 28, 2012

Government approves 5% stake sale in ONGC, may fetch Rs 12,000 crore

A group of ministers on Tuesday approved the sale of 5% equity in state-owned Oil and Natural Gas Corporation (ONGC) through the auction method to institutional investors, a move which is expected to help raise more than Rs 12,000 crore for the cash-strapped government.The government in the Budget for 2011-12 had envisaged to raiseRs40,000 crore through PSU disinvestment, but in about 11 months it could mop up only Rs1,145 crore from stake sale in the Power Finance Corporation (PFC).

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