POLICY OF THE GOVERNMENT ON DISINVESTMENT

The National Common Minimum Programme, envisages that profit-making companies will not generally be privatised. All privatisations will be considered on a transparent and consultative case-by-case basis. The existing “navaratna” companies would be retained in the public sector while these companies can raise resources from the capital market. It also envisages that the public sector companies and nationalized banks will be encouraged to enter the capital market to raise resources and offer new investment avenues to retail investors.

In pursuance of the above policy the Government of India has set up a " National Investment Fund" and has also approved in principle the approach that (a) currently unlisted profitable PSUs with net worth in excess of Rs. 200 crore could be listed through an Initial Public Offering (IPO), either in conjunction with fresh equity issue of the PSU or independently, on a case by case basis, subject to Government's retaining the residual equity of 51% and management control : (b) sale of minority shareholding profitable PSUs either in conjunction with a public issue of fresh equity of the PSU or independently, subject to Government's retaining the residual equity of 51% and management control.

CAPITAL STRUCTURE OF OIL PSUs AS ON 31.3.2005

(Rs.Crores)
S.NO. PSU of the company Authorised Capital Paid up Capital Govt. of India Holding in %

1.

ONGC

15000.00

1425.93

74.14

2.

OVL

500.00

300.00

NIL

3.

OIL

250.00

214.00

98.13

4.

GAIL

1000.00

846.00

57.34

5.

IOC

2500.00

1168.01

82.03

6.

HPCL

350.00

339.00

51.01

7.

BPCL

300.00

300.00

66.20

8.

IBP

100.00

22.15

NIL

9.

EIL

100.00

56.16

90.40

10.

BRPL

200.00

199.82

NIL

11.

KRL

150.00

138.47

NIL

12.

NRL

1000.00

735.63

NIL

13.

CPCL

400.00

400.00

NIL

14.

BALMER LAWRIE

30.00

16.29

NIL

15.

BIECCO LAWRIE

50.00

42.00

57.37$

16.

MRPL

2000.00

1762.00

NIL

In case of IOC and CPCL figures pertain to 2003-04 and the same for 2004-05 are yet to be finalised.

$ Equity held by OIDB

FINANCIAL PERFORMANCE OF OIL PSUs DURING 2004-2005

(Rs.Crores)
S.NO. Name of the PSU Gross Turnover Profit After Tax Dividend in %

1.

ONGC

45826.00

12168.00

12168.00

2.

OVL

4768.60

981.87

NIL

3.

OIL

4617.65

946.36

33.92

4.

GAIL

12435.00

1947.00

17.36

5.

IOC

130202.95

7004.82

35.02

6.

HPCL

63000.00

1025.00

18.72

7.

BPCL

63125.61

721.02

30.00

8.

IBP

13620.00

13620.00

NIL

9.

EIL

900.00

95.00

44.21

10.

BRPL

3320.34

426.75

60.00

11.

KRL

13134.50

842.12

3.78

12.

NRL

4298.99

409.15

30.57

13.

CPCL

9430.45

400.05

18.61

14.

BALMER LAWRIE

1071.05

29.64

30.00

15.

BIECCO LAWRIE

40.71

0.93

NIL

16.

MRPL

20693.00

879.00

NIL

In case of IOC and CPCL figures pertain to 2003-2004 and the same for 2004-05 are yet to be finalised.

$ Equity held by OIDB