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Oil companies allowed to sell cross-holdings
BS Bureau in New Delhi |
December 19, 2003 10:30 IST
The Union Cabinet approved the petroleum ministry's proposal for uncrossing the holdings in three public sector oil companies, Oil and Natural Gas Corporation, Indian Oil Corporation and Gail Ltd.
The modalities and timing of the sale of the shares will be worked out later.
The government will get around Rs 1,300 crore (Rs 13 billion) as capital gains tax from the sale.
In its proposal to the Cabinet, the petroleum ministry is learnt to have said in the current decontrolled scenario, the cross-holdings had no use and, therefore, should be sold in the stock market.
IOC has a 9.6 per cent stake in ONGC and a 4.8 per cent holding in Gail, while ONGC has a 9.1 per cent stake in IOC and a 4.8 per cent stake in Gail. Gail holds 2.4 per cent in ONGC.