Buoyed by diesel price deregulation, the government is looking at selling stake in Indian's largest fuel retailer IOC for the second time in 13 months. Sale of 24.27 crore shares, or 10 percent stake, in IOC would mop up close to Rs 8,000 crore at current market price.

A total of 41.22 crore shares, or 5 percent, in NTPC could fetch Rs 5,600 crore to the exchequer at current rates. The government had last sold stake in NTPC in February 2013. A decision to stake sale in IOC and NTPC was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, sources said.
Stake sale of IOC and NTPC together would fetch Rs 13,600 crore. Although it's not clear which PSU would hit the markets next, sources said the Disinvestment Department is "watching things closely and as and when it feels proper, the share sales would happen".

The government has set the ball rolling for PSU stake sale in the current fiscal. It sold 5 percent in REC and raised Rs 1,550 crore last month. The government currently holds 68.57 percent in IOC and 74.96 percent in NTPC.

Shares of IOC were quoting at Rs 331.45, down 0.41 percent, while NTPC was trading at Rs 136.85, down 3.29 percent from its previous close on BSE. For the current fiscal, the government has identified more than a dozen PSUs for stake sale, including National Fertilizers, MMTC, Hindustan Copper and ITDC. It has approval of the Cabinet for sale of 5 percent stake each in ONGC and Bharat Heavy Electricals (BHEL), and 10 percent each in NALCO and NMDC.

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