IOC offers to buy entire Govt. stake in IBP

NEW DELHI, JULY 16. Indian Oil Corporation (IOC) has approached the Government with an offer to buy another state owned oil marketing company IBP, chosen for disinvestment this fiscal by the Cabinet Committee on Disinvestment (CCD).

IOC approached the Petroleum Ministry earlier this month to discuss the possibilities of buying the entire Government stake in IBP, which has over 1,500 retail marketing outlets.

IBP Chairman and Managing Director Mr. S. Mathur told PTI that there were many players interested in IBP, but ``everybody wants to buy us... We want that disinvestment in the company should be in the best interest of the Government, employees and the consumers.''

Asked if he would prefer IBP being sold to IOC, Mr. Mathur declined comment saying ``we will only prefer that company's interests are promoted... This is an issue best left to the Government to decide.''

The Petroleum Secretary Mr. S. Narayan also declined to comment on the issue saying ``this has to be decided by the cabinet.'' Official sources said that IOC, which has talked to senior ministry officials, is yet to send a formal proposal while indicating the same would be coming soon.

IOC's move assumes significance in the context of the meeting of the Cabinet Committee on Disinvestment, scheduled for July 19, when Petroleum Minister Mr. Ram Naik is likely to reiterate his position that none of the oil companies be privatised.

Stating that CCD had decided that the Government should retain majority stake in IOC, ONGC and GAIL, sources said IOC's claim might be supported by the Petroleum Ministry as it would tantamount to divesting the entire Government stake to a company controlled by the Government itself.

While Government holds a majority 59.59 per cent equity in IBP, financial institutions and banks have a 23 per cent stake in the company.

Employees, non-residents and others hold a total of 17.4 per cent equity.

- PTI

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