The Privatisation ministry confirmed that the banks in question are Kotak Mahindra Capital Co Ltd, DSP Merrill Lynch Ltd and Morgan Stanley Private Ltd (for ONGC) and ICICI Securities Ltd and HSBC Capital Markets Ltd (for Gail).

According to the Privatisation minister, Arun Shourie, "the offers would be made in the domestic market and were likely to net the government around 125 billion rupees at current prices." He confirmed that his ministry had been given the go-ahead - in principle - by the Cabinet Committee on Disinvestment "to sell 10% equity in GAIL and ONGC" and that "the issues are being targeted within this financial year to March 2004."

Local experts in the India oil and gas sector believe that the equity stake sales will help the central government to hit its privatisation target of 132 billion rupees.