Petroleum Minister Ram Naik has mooted sale of 12-15 per cent of government equity in oil refiner Indian Oil Corporation and exploration giant Oil and Natural Gas Corporation in the capital markets to shore-up state finances.

The Divestment Development: Complete Coverage

Government has been able to garner just about 10 per cent of the Rs 13,500 crore (Rs 135 billion) revenue target set from stake sale in state-run firms since big-ticket sell-offs like Bharat Petroleum Corporation and Hindustan Petroleum Corporation got stuck due to a Supreme Court ruling.

"This (deficit in revenue receipts) is a concern for the finance ministry as also the divestment ministry. Petroleum ministry will extend all co-operation (in meeting the shortfall). Reducing some equity in IOC or ONGC or GAIL can be one of the ways," he told PTI in New Delhi.

The proposal, which is yet to be formally put up to the Cabinet, is besides the three options government is exploring in the wake of the apex court halting privatisation of HPCL and BPCL.

IOC too has proposed a mega overseas issue of $2 billion (20 per cent equity) or buying government stake in HPCL to bridge the revenue deficit.

"We are yet to discuss the issue (of offloading shares of IOC or ONGC in the capital market) in the Cabinet," Naik said.