With the approval of the proposal by the Cabinet Committee of Economic Affairs (CCEA), OIL will now go in for fresh equity issue of 10% of its paid-up capital through IPO. This would enable the company to get listed on the bourses.
The price band floor price and offer price would be cleared by the empowered group of ministers (EGoM) constituted to decide the price for the sale of government shares. The CCEA has also approved the proposal for issuing an additional 1% of OIL paid-up capital to its employees.
Further, divestment of 10% of OIL in favour of the three oil marketing companies, Indian Oil, Hindustan Petroleum and Bharat Petroleum, in the ratio of 2:1:1 was also cleared by the CCEA. The move is expected to strengthen the existing synergies of the three oil-marketing companies and also help them raise resources by disposing these shares in the open market at an opportune time.
Meanwhile, in a bid to control the spiralling wheat and pulse prices, the Cabinet extended the validity of the central notifications dated August 29, 2006, and February 27, 2007, for another six months from September 1, 2007, to February 29, 2008, on the same terms and conditions by a central order under Section 3 of the Essential Commodities Act, 1955. The decision would empower state governments to undertake de-hoarding operations and control the prices of wheat and pulses.
The Cabinet also approved introduction of the Factories (Amendment) Bill, 2005, which would ensure flexibility of women to work in night shifts. The Bill was pending in Lok Sabha since August 2005. The amendment seeks to effect further changes in Section 66 of the Factories Act of 1948.