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Govt Gets a Rs 4,000-Cr New Year Gift From ONGC

  • The Centre -- running out of cash, and time before the Budget to meet its fiscal deficit target -- will get as dividend Rs 3,964 crore (Rs 39.64 billion) from its flagship listed firm Oil and Natural Gas Corporation (ONGC).The state-owned explorer, in which the Centre owns 74.14 per cent or 6.34 billion shares, informed the Bombay Stock Exchange that the Board of Directors has approved an interim dividend of Rs 6.25 per equity share for 2011-12.

  • The news will come as a consolation for the government that had to shelve a Rs 12,000-crore (Rs 120 billion) plan to sell its 5 per cent stake in ONGC in a follow-on offer last year.The share sale was discontinued due to lack of interest among investors amid volatile market conditions and uncertainty over the government's fuel subsidy plan. Government has since been exploring options -- including buybacks, cross-holding and institutional placements -- to raise money under the divestment programme.

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