By RAJESH ROY and MUKESH JAGOTA
NEW DELHI -- India's federal cabinet Thursday approved a proposal to sell a 10% stake in state-run fuel retailer and energy company Indian Oil, Trade Minister Anand Sharma said.
Shares of the company closed at 195.75 rupees on the Bombay Stock Exchange on Thursday. At this price, the government will be able to raise 47.5 billion rupees ($786 million) from the offering.
The government currently owns 78.92% of the country's largest fuel retailer.
The share sale is part of the government's program to raise 400 billion rupees in the fiscal year through March 2014 by selling shares in state-run companies.
This revenue is key to India's plan to narrow its fiscal deficit from 4.9% of gross domestic product in the last fiscal year. India's wide fiscal deficit has pushed up market borrowing by the government in recent years, stoking inflation and reducing credit availability for private borrowers.
Dow Jones Newswires