Merchant bankers won?t be able to bid in consortium for the follow-on public offer of ONGC expected to hit the market around March 9.

The consortium approach helps those merchant bankers who do not have a strong retail network. Meanwhile, the government on Wednesday started the process of hiring merchant bankers for the FPO. The request for proposals will be public by January 7.

The government plans to complete the disinvestment calendar for current financial year with the mega public offer of upstream oil major ONGC around March 9 this year, an official with direct knowledge on the issue told FE.

With plans of bringing out only two public issues in the remaining part of this financial year, the government intends to launch follow-on public offer of SAIL just before the ONGC issue sometime by the middle of February. The two issues together are expected to mop up close to Rs 17,500 crore for the government at current market price taking it closer to the disinvestment target of Rs 40,000 crore for 2010-11.

?While there is no pressure to meet the Rs 40,000 crore target, if need be, another small issue could be squeezed in depending on the market conditions,? said the official.

The government earlier intended to bring out the issues of Power Finance and Hindustan Copper also in the January- March quarter, but it has been decided to study the market thoroughly before the two issues hit the market.

The red herring prospectus (RHP) for the ONGC FPO would be filed around mid-February.

A finance ministry official said while final dates for SAIL issue will be decided in next couple of weeks, it is likely to open on February 15. The ministry of steel has shortlisted the nominees for the independent director, while the Appointment Committee of the Cabinet will give its decision in a week?s time. The government has so far garnered only Rs 22,763 crore from the stake sale in its companies in the current fiscal and has to mop up another Rs 17,240 crore to meet the target.

The disinvestment programme started on a slow note, as the government raised only Rs 2,000 crore in the first two quarters of the current financial year. It gathered steamed only in October after the Coal India issue.

In the third quarter, over Rs 25,000 crore worth government offerings hit the market. With no decision yet on the oil subsidy mechanism, government has bought time by pushing the ONGC issue to March so that it gets a better response from the market.

Meanwhile, it is expected that the disinvestment target

for the next financial year is likely to be fixed a bit lower at Rs 30,000-35,000 crore.