New Delhi: Petroleum Minister Ram Naik on October 1 said that he was not against disinvestment of government equity in oil public sector undertakings (PSUs), but felt strategic sale was not the most appropriate way.

"I am not against disinvestment. We (ministers in government) are very much for disinvestment, but the desirability of strategic route in disinvestment is being discussed," Naik said.

The cabinet committee on disinvestment (CCD) had last month postponed decision on privatisation of state-run refiners Bharat Petroleum and Hindustan Petroleum following sharp differences among ministers on the route to be followed.

Naik said that government should get out of oil PSUs, other than where a decision has been taken to keep majority control, but strategic sale was not desirable.

"We feel that shares should go to people at large instead of being sold to one group," he said revealing his mind on the question of sale of government equity in BPCL and HPCL through public offer.

Asked if public offer would not deprive the government of control premium it gets through the strategic route, Naik said, "Government is not in the business of making profits or losses. Moreover, the cash investment in BPCL and HPCL has been less than Rs 43 crore way back in 1974 and today the two companies are worth Rs 20,000 crore each."

Government has not provided any budgetary support to the two PSUs, he said, adding that the public offer can fetch good returns considering the high desirability of oil PSUs in the stock markets.

PTI