As part of efforts to bridge the fiscal deficit, the government is considering a proposal for payment of interim dividend by state-owned oil companies, a top government official said on Thursday.

"The government is considering a suggestion whether interim dividend can be paid by oil PSUs. The matter will be further discussed with the oil companies," petroleum secretary B K Chaturvedi told reporters in New Delhi, after a meeting of government officials, including divestment secretary Dhirender Singh and advisor to the finance ministry Vijay Kelkar.

Last year, the oil companies paid interim dividend of Rs 2,687 crore (Rs 26.87 billion), he said, adding the PSUs earned profits of Rs 10,300 crore (Rs 103 billion) during the first half of this fiscal.

Chaturvedi said the proposal for offloading 20 per cent stake in Indian Oil Corporation and five per cent equity in Oil and natural Gas Corporation did not come up for discussion.

Chaturvedi, however, did not indicate the quantum of dividend the oil companies would be asked to pay.

The move is a part of efforts by the government to mop up additional revenues to bridge the fiscal deficit in the wake of Supreme Court halting big-ticket divestment of two oil companies - Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd.

The government had targeted to raise Rs 13,200 crore (Rs 132 billion) from divestment of equity in PSUs in the current fiscal year.

Meanwhile, divestment secretary said that a proposal for unlocking cross holdings in IOC, ONGC and Gail was discussed.