The deferment of IOC stake sale is in line with the Government's policy of concentrating only on strategic sales as a piecemeal disinvestment does not get good price. "This was the reason why shares of Gas Authority of India Ltd got unsatisfactory price," a senior government official said.

At the cabinet committee on disinvestment (CCD) meeting on April 22, disinvestment in IOC was to be taken up along with the cases of Air India, Kudremukh Iron Ore Company Ltd and National Mineral Development Corporation.

With the deferment of IOC disinvestment, the next CCD meet, expected to be in the middle of May, will take up the other three cases.

The petroleum ministry has informed the DoD that it is working on a restructuring plan of the giant PSU, said official sources.

The authorised capital of IOC is Rs 2,500 crore and the paid-up capital is Rs 389.31 crore. The corporation achieved a turnover of Rs 69,430 crore in 1998-99, against Rs 59,176 crore in 1997-98. In 1998-99, the profit before tax was Rs 2,733 crore and profit after tax was Rs 2,214 crore.

In the last fiscal, the estimated turnover of the company was Rs 85,310 crore and profit after tax, Rs 2,764 crore. The corporation declared a dividend of 130 per cent amounting to Rs 506 crore for 1998-99.

IOC, the largest integrated oil company in the public sector, has seven operating refineries with a combined installed capacity of 35.6 million tonnes per annum. It owns a 6,453-km network of crude oil and product pipelines across the country, with an installed capacity of 43.45 million tonnes per annum.

The refineries of IOC achieved a crude throughput (the capacity to refine crude) of 30.36 million tonnes during 1998-99. Against the MoU target of 31.8 million tonnes for the last fiscal, the corporation achieved the throughput of 23.86 million tonnes till December 1999.

The pipelines achieved a throughput of 34.05 million tonnes during 1998-99. The MoU target for 1999-2000 was fixed at 37.34 million tonnes. The achievement till December 1999 was 29.41 million tonnes.

During the first three quarters of the last fiscal, IOC initiated several measures for expansion, diversification and globalisation of business. It submitted bids under the new exploration licensing policy (NELP). The company also signed a memorandum of strategic alliance with ONGC for combined downstream and upstream operations in India and abroad.

IOC signed MoU with, IPCL, the petrochemical PSU, for co-operation in refinery, petrochemicals and power. The oil giant also set up power projects at Panipat in Haryana and Savli in Gujarat in joint venture with MNCs.

IOC signed with Elf Antar of France to market fuel additives and collaborate in R&D. Diesel fuel additives have also been introduced in the market.