By Deepak Joshi NEW DELHI, JAN 7 : Government plans to sell part of its equity stake in Indian Oil Corp Ltd via follow-on offer in 2011-12 (Apr-Mar) as it will go on with its plan to sell equity in Oil and Natural Gas Corp Ltd. "We don't want stake-sale of the PSUs (public sector undertakings) in the same sector in the current financial year," Disinvestment Secretary Sumit Bose told reporters Friday. Government, which currently holds 74.14% in state-owned ONGC, proposes to sell 5% equity stake to raise an estimated Rs 130 billion via public issue. Also, government plans to sell 10% equity stake in Indian Oil Corp, in which it holds 78.92% equity stake, with the company issuing fresh equity shares of a similar amount, to mop up an aggregate Rs 200 billion. Government also expects to bring in the first tranche of the proposed follow-on share-sale of Steel Authority of India Ltd in February, to divest 10% from its equity stake in the company, Bose said. "SAIL disinvestment will be undertaken in first or second week of February," he said. Government proposes to divest total 20% equity stake in SAIL in two equal tranches, in which it currently holds more than 85% equity stake. The proposed SAIL FPO will include government selling 10% equity stake and the company issuing fresh shares of the same amount. Bose said government was confident of meeting its target to raise Rs 400 billion by selling stake in profitable state-run companies in the current financial year. Filed by Nayantara Sridhar +91 (22) 6147 5100. feedback@tickerplantindia.com Copyright (c) TickerPlant Ltd.