The petroleum ministry has worked out a package of measures to raise an extra Rs 10,800 crore (Rs 108 billion) from the oil sector during the current fiscal in order to help the government shore up its finances.

The package includes an additional Rs 600 crore (Rs 6 billion) from "profit petroleum"-- the share of crude or natural gas the government gets from fields operated by private firms -- an extra Rs 200 crore (Rs 2 billion) from a cess on domestic crude because of stepped-up production, and Rs 10,000 crore (Rs 100 billion) by selling 10 per cent of the government's stake in the Oil and Natural Gas Corporation or 20 per cent in the Indian Oil Corporation.

The additional resources are expected to help the finance ministry bridge the shortfall from the divestment target of Rs 13,500 crore (Rs 135 billion) for 2003-04.

Petroleum Secretary B K Chaturvedi said that his ministry would submit the proposal to the finance ministry during discussions on the mid-term review of the economy, due shortly.

The government expected Rs 1,600 crore (Rs 16 billion) this fiscal from profit petroleum against Rs 993 crore (Rs 9.93 billion) in 2002-03 and Rs 624 crore (Rs 6.24 billion) in 2001-02, Chaturvedi said.

In 2002-03, the government had doubled the cess on domestic crude from Rs 900 a tonne to Rs 1,800. Domestic crude production so far this year is 26 million tonnes and the cess will yield Rs 4,320 crore (Rs 43.20 billion).

There is also a chance crude production will rise more than 1 million tonnes in 2003-04 because of enhanced oil recovery programmes in a number of oilfields. At Rs 1,800 a tonne, this could net the government Rs 200 crore (Rs 2 billion) more.

Chaturvedi said the petroleum ministry's has estimated that the sale of a 20 per cent stake in IOC would yield around Rs 10,000 crore (Rs 100 billion) in the present market conditions. So would selling 10 per cent in ONGC.