Finance ministry on Friday said that there was no decision to divest stake in oil PSUs -- Indian Oil Corporation and Oil and Natural Gas Corporation -- through public offer while admitting that there could be a shortfall of Rs 8,000 crore (Rs 80 billion) in the overall divestment target for the current financial year.
"As of now divestment realisation could be Rs 7,000 crore (Rs 70 billion) to Rs 8,000 crore less than the target of Rs 13,000 crore (Rs 130 billion)," finance secretary D C Gupta told reporters after releasing the mid-year review of the economy, in New Delhi.
On the reports of proposed public offering of 20 per cent government equity in Indian Oil Corporation and 5 per cent in Oil and Natural Gas Corporation, Gupta said, "No decision has been taken on this."
Dismissing reports that the government was taxing oil PSUs by seeking interim dividend for bridging up fiscal deficit, Gupta said: "Fall in divestment targets will not put pressure on the economy... shortfall will be offset by higher tax collections."
Asked about the reports that petroleum secretary was to talk to divestment secretary about divestment in IOC and ONGC through IPO, Gupta said, "He (petroleum secretary) had brought up the issue of cross holding by oil PSUs on Thursday (at the high level inter-ministerial meeting)... they (oil PSUs) want to offload the equity (held by them in other PSUs).
