The Vajpayee government was going ahead with the revamp plan despite protest from CRL and Madras Refineries. ``In the changed circumstances, there is no way the government can swap stakes in the refineries. The plan is as good as shelved,'' oil industry sources said.

BPCL was expected to fork out roughly Rs 700 crore for buying out the Centre's stake of around 55 per cent in CRL and 33 per cent in IBP. IOC's outgo for the Government's holding in MRL of around 53 per cent could be lower at barely Rs 400 crore. Either way, the revenue was expected to contribute to part-funding the disinvestment target of Rs 10,000 crore for the current fiscal. However, the Kerala governmentand CRL had vehemently protested the equity sale plan.

Moreover, the Centre's plan to sell 26 per cent holding in Engineers India to Indian Oil and 33 per cent stake in IBP to BPCL is also likely to be deferred. ``It is to be seen whether the disinvestment policy in oil sector will continue in the present form,'' said an official of an oil company. The Union cabinet had earlier given the go-ahead to reduce the government stake to 26 per cent in non-strategic PSUs (which would now include the oil companies).

The fate of the Nitish Sengupta committee report is also uncertain. Oil companies had protested against most of the suggestions and IOC, in particular, had insisted that stand-alone refiners could hold their own in a deregulated scenario. Experts, however, have reiterated that it makes more sense for both MRL and CRL to be aligned with stronger marketing companies and that is exactly what the government is striving to do now.

Bankers and stock analysts are expecting a new direction and differentpolicies in PSU disinvestment when the new government takes over at the Centre. ``The target and the mode of disinvestment may change depending on the form of the government. Many of the disinvestment plans taken by the Vajpayee government are likely to be changed,'' said an analyst.

The government had raised Rs 6,620 crore through the disinvestment of its holdings in PSUs in the fiscal 1998-99. This was largely due to the jugglery of equity swap among oil companies. Out of the total amount, as much Rs 4867 crore was raised through cross-holdings in oil companies. While 2.5 per cent stake in ONGC by GAIL saw Rs 600 crore go into the government kitty, a 10 per cent stake in GAIL by IOC saw the government richer by Rs 2567 crore.

The 10 per cent stake in IOC and 5 per cent in GAIL by ONGC yielded Rs 1700 crore to the government.