The price of Rs 70 per share at which disinvestment had been carried out in global depository route (GDR) market recently in November 1999 is 17 per cent higher than the domestic issue price of Rs 60 in February 1999," Naik told the Lok Sabha in a written reply.

Stating that government had not sold the shares in Gail at prices much below the expected prices to the foreign investors, Naik said that since 1991, 27 crore shares of government's equity in Gail had so far been sold.

Naik said that pricing of Gail shares was based on the book-building process, which showed the price at which the investors were prepared to pay for a share at a given point of time.

The government in 1997 had to withdraw the disinvestment inGail through the GDR market on account of extremely low demand even at prices below the minimum approved price.

Gail issue was launched in October 1997 with a mandate to sell up to 20 crore shares of face vlaue of Rs 10 per share at the minimum price of Rs 125 per share, against the domestic price of Rs 160 per share at the time of approval, Naik said.

Naik said that the book value of Gail share is about Rs 48 while its face value is Rs 10. Government had offered around eight crore shares in February 1999 to the domestic investors of which only three crore could be sold at a price of Rs 60 per share.

In another reply, Union petroleum minister said, that during 1999-2000 the LPG imports would be 1.263 million metric tonnes while the domestic availability of the gas would be 4.644 million metric tonnes.

He said that availability through diesel imports would be 3.956 million metric tonnes while the domestic availability of diesel would be 36.948 million metric tonnes during 1999-2000.

Theavailability of petrol in the domestic market during the period would be 7.343 million metric tonnes while no imports would be made in 1999-2000, Naik said.

Stating that steps are being taken to increase the crude oil production in the country through application of improved technologies, Naik said that refining capacity was also being increased in the country.

"Steps are also being taken to increase crude oil production through better understanding of reservoir behaviour, development of new fields, additional development of existing fields and by inviting foreign and private capital in the upstream sector," he said.

Refining capacity is being increased by expansion of the existing refineries in the public sector and also through setting up of refineries in joint and private sector, Naik said.

National shipping policy being re-worked
The government is formulating a long-term perspective plan for shipping by evolving the national shipping policy. This was stated by Union minister of state forsurface transport Debendra Pradhan in reply to a question in the Lok Sabha on Monday.

The minister said that shipping being a cyclical industry was being influenced by the prevailing trend of global trade and commerce. At present, it is passing through a recessionary phase and is having a depressed freight market, he added.

In order to give continued impetus to the growth and development of the shipping industry, Pradhan said the government has introduced automatic approval for acquisition of ships, import of large vessels in open general licence, relaxation of age norms for acquisition of second hand vessels and freedom to time charter out Indian ships to foreign companies for employment in international cross trade.

In reply to another question, Pradhan said the work on the North-South and East-West corridors under the National Highway Development Project has started. Contract for upgradation of 220 km at an estimated cost of Rs 670 crore have already been awarded.

Funds for the project have beenprovided from budgetary grants, by way of investment by the Union government in the National Highways Authority of India.

Addressing the lower house, Rajnath Singh, the newly appointed minister of surface transport, said that the Ennore port, with 16 million tonne capacity, is expected to be commissioned by July 2000.

Singh said the government was creating additional capacity in the existing major ports under various plan schemes to meet the growing demand of the trade. Ennore port, 25 km north of Chennai, is being constructed at an estimated cost of Rs 927.10 crore with the assistance of the Asian Development Bank.