Union Cabinet will consider sale of stake in Indian Oil, say sources

New Delhi: The Cabinet Committee on Economic Affairs will discuss on Wednesday the possible sale of a 10 percent stake in Indian Oil Corporation, two sources with knowledge of the matter said, as the government finds ways to meet its fiscal deficit target.

The sale of a stake in India's largest oil refiner, which is nearly 69 per cent owned by the government, could help New Delhi raise more than $1 billion towards its asset sale target of $10 billion for the fiscal year ending in March.

"In all probability it will be approved," said one of the government officials, neither of whom wished to be identified.

Prime Minister Narendra Modi's government is struggling to deliver on its budget promise to trim the fiscal deficit to a seven-year low by the end of the current financial year.

It has managed to raise just over $300 million of the divestment target so far and also sales of stakes in Coal India and Oil and Natural Gas Corporation are planned.

But several officials have said India is unlikely to meet the target.