The petroleum and divestment ministers took their battle over the divestment of Indian Oil Corporation to the streets with both Ram Naik and Arun Shourie making conflicting statements over Friday's Cabinet Committee on Divestment meeting proceedings.

Minutes after Naik told reporters that the CCD meeting only discussed whether Indian Oil could be divested and left the modalities unanswered, Shourie said the CCD indeed directed his ministry to explore the possibility of divesting the marketing arm of IOC.

Naik told reporters in his Shastri Bhawan office: "At the CCD meeting on October 3, we discussed if IOC could be divested and, if yes, how it is to be done. My ministry and the divestment ministry have been given three months to work out the 'how' part."

At his Electronic Niketan office, Shourie told reporters on Tuesday that the recorded minutes of the CCD stated the divestment ministry in tandem with the petroleum ministry was asked to explore the possibility of divesting the marketing arm of IOC with the objective of bringing in private players in oil marketing.

When asked how he could relent on putting IOC, India's only Fortune 500 company, on the block, Naik said the government would deliberate on the issue carefully.

"Discussions can happen, the decision is crucial," he said, adding there was no proposal to offload 15-20 per cent stake in the market.

Shourie said his ministry would write to the petroleum ministry in a day or two to enquire "how best we work on the mandate given by the CCD at its meeting on October 3" in order to meet the three-month deadline.

What IOC wants

• Indian Oil Corporation has suggested an overseas public issue of $2 billion or that it acquire the government's stake in Hindustan Petroleum to avoid splitting its retail business.
• The IOC board on Tuesday told Petroleum Minister Ram Naik that American Depository Receipts of 20 per cent of its equity could be issued to garner Rs 9,600 crore (Rs 96 billion). Otherwise it can take over the government's 34.01 per cent stake in Hindustan Petroleum to avoid sale of its retail arm to a third company.