NEW DELHI (Reuters) - The government expects to raise more than 25 billion rupees by selling a 10 percent stake in Oil India Ltd (OILI.NS) on Friday, Oil Secretary G.C. Chaturvedi said on Wednesday.
Selling down its shareholding in companies is central to the government’s plan to cut its fiscal deficit to 5.3 percent of GDP in the current financial year from 5.8 percent in 2011/12.
India’s hefty fiscal deficit has triggered warnings of a potential credit rating downgrade.
The government aims to raise 300 billion rupees by selling shares in the 2012/13 fiscal year to March.
($1 = 53.7450 rupees)
Reporting by Manoj Kumar; Editing by Prateek Chatterjee