New Delhi: Faced with prospects of a big shortfall in meeting its disinvestment targets, Government today (Dec 23, 2003) decided to sell its 10 per cent stake in India's largest profit making firm Oil and Natural Gas Corporation (ONGC) and gas transmission monopoly Gail (India) Ltd.

"The Cabinet Committee on Disinvestment (CCD) agreed to sell 10 per cent equity in ONGC and Gail through a public offer," Disinvestment Minister Arun Shourie told reporters after CCD meeting.

Shourie said the 10 per cent stake would be sold in the domestic market.

The idea for partial disinvestment in oil PSUs (public sector undertakings) was first mooted by Petroleum Ministry in mid-November. In the concept paper on disinvestment in country's largest refiner Indian Oil Corporation (IOC), it suggested that the Government either sell 20 per cent in IOC to raise Rs 9,000 crore or 10 per cent each in IOC, Gail and ONGC to garner Rs 15,000 crore.

A public offer of 14.2 crore equity shares of ONGC and 8.4 crore equity shares of Gail through book building will be made this fiscal to meet the shortfall in disinvestment target following the Supreme Court judgement halting privatisation of Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL).

The State holds 84.11 per cent stake in ONGC and 67.34 per cent stake in Gail.

Government is faced with huge deficit in its Rs 13,200 crore revenue mobilisation target from disinvestment. Till November 20, about Rs 1,335 crore had been realised from disinvestment, which is a little over 10 per cent of the target of Rs 13,200 crore for 2003-04.