The Petroleum and Finance Ministries hold different views in the matter of divesting shares in Indian Oil Corporation Ltd (IOC).
“I feel it is not the right time (for disinvestment) but the Finance Ministry and Department of Disinvestment are keen to go ahead,” Vivek Rae, Petroleum Secretary, told media persons.
Rae said the issue will be decided by Finance Minister P. Chidambaram and Oil Minister M. Veerappa Moily.
Shares of IOC closed 1.51 per cent lower at Rs 204.90 on the BSE on Tuesday.
The stock had touched a 52-week high of Rs 375 on January 18.
The Department of Disinvestment is planning to start a three-nation road show, starting October 6, to attract foreign investors. The Government could mop up around Rs 4,000 crore by selling 10 per cent stake in the refining and oil marketing major.
Last month, the Cabinet Committee on Economic Affairs gave its go-ahead for 10 per cent sale of Government’s stake through the Offer-for-Sale route. Currently, the Government holds 78.92 per cent stake in IOC.
Rae added that his Ministry favours calling off the road show. “If the timing is not right for disinvestment, what is the point of having road shows,” he said.
“They have their own target for disinvestment. We cannot at the same time sell an IOC share at Rs 200. You have to balance out the need for mobilising Rs 40,000 crore from disinvestment along with the fact that you cannot sell your crown jewels at low prices,” the Petroleum Secretary said.