New Delhi: Amidst pressure from the Ministry of Disinvestment for privatisation of Hindustan Petroleum and Bharat Petroleum, Oil Minister Ram Naik said the two public sector undertakings (PSUs) needed large funds for expansion projects and he would approach Prime Minister to raise resources through an Initial Public Offering (IPO) of equity shares.

"We urgently need money to finance capacity addition projects in both BPCL and HPCL. This is a very good time for raising money from the market through an IPO as oil PSU shares are being considered a good investment," Naik told reporters.

Naik said BPCL has already invested about Rs 250 crore on the Rs 6,000 crore Bina refinery project while HPCL has sunk Rs 200-225 crore in the over Rs 9,000 crore Bhatinda refinery project.

"We are very clear that the projects have to be completed at any cost. Both these projects are essential not only to meet petroleum product requirement of Madhya Pradesh and Punjab, but also adjoining states. It is my job to ensure continuous product supply," he said.

On the issue of strategic sale of government equity in BPCL and HPCL, Naik said Cabinet Committee on Disinvestment will shortly decide on whether an IPO of equity shares should precede privatisation.

Declining to elaborate, he said he has sought an audience with the Prime Minister to make a presentation on the issues like funding of projects through IPO that need to be addressed prior to any decision on disinvestment.

PTI