To reach its divestment target of Rs 56,500 crore for this fiscal, the government has been on the front to to raise revenue and is likely to divest 5 percent of its stake in ONGC to raise around Rs 10,000-12,000 crore.
Quoting government sources, Nithya Balakrishnan of CNBC-TV18 reports that the Centre feels that market conditions are better than previous fiscal to offload its stake in ONGC.
The government is keen to offload its 5 percent stake in ONGC the third quarter of this fiscal, the source said.
At current market price, 5 percent of ONGC is valued at Rs 11,100 crore and the governments total shareholding currently stands at 68.93 percent.
Over the last few years, both UPA and NDA have fallen short if their divestment target. In the past, volatile market conditions and lack of interests from investors, as they did not find the target companies worth investing in at the price being quoted by the government, have been blamed for not meeting the divestment target.
Revenue from divestment can be used by GoI to fulfill its infrastructure and growth promises.
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