Showing a preference for mopping up funds from overseas market, sources said that the Container Corporation (Concor) could be the first PSU to be targeted.

Finance minister Yashwant Sinha had identified Concor, Indian Oil Corporation (IOC), Gas Authority of India Ltd (Gail) and Videsh Sanchar Nigam Ltd (VSNL) for disinvestment in the current financial year to mop up Rs 5,000 crore against realisation of Rs 960 crore in the previous year.Senior officials in the ministry said that preparations in terms of arrangers and investment bankers were already completed for all the four PSUs.

Asked if the government would prefer moving domestic markets in view of the suggestions from international credit rating agencies and merchant bankers, sources said though the ideawas good, it could lead to crowding out of the private corporates from the capital market.

Gail could be the second PSU for disinvestment by September followed by IOC in December, investment banking sources said.

It may be recalled that the government had planned to divest shares in all these PSUs last year for attaining a revised target of Rs 7,000 crore, but difficult market conditions prevented the move. The government is planning to take the global depository receipt (GDR) route for Concor and Gail, while in IOC, the government would be divesting stakes through GDRs and a domestic issue. A small issue of up to Rs 80 crore could be launched domestically, banking sources said.

The government had recently appointed SBC Warburg as the global co-ordinator of the Concor GDR issue after JP Morgan announced its decision to pull out of the equities business in the Asian region.