India is considering selling 10 per cent in Indian Oil Corp and 5 per cent in Oil and Natural Gas Corp in the March quarter, a deal that could fetch the government about $5.6 billion at current prices.

“The oil ministry has taken an in-principle decision, we have to go to the cabinet now,” Oil Secretary S Sundareshan told reporters.

The sales will be part of a government plan to sell stakes in about 60 state-run firms over the next few years, as India moves to cut a stubbornly high fiscal deficit and garner funds to spend on schemes for the poor. The federal government expects to raise about $8.6 billion in the current fiscal year that ends next March through such sales.

Sundareshan said the oil ministry had also allowed refiner Indian Oil Corp to sell an additional 10 per cent of the expanded share capital.

Asked if the share sale of the two firms would happen by the end of this fiscal, he said, “hopefully”. The federal government owns 78.92 per cent of Indian Oil Corp and 74.14 per cent in ONGC. Sundareshan also said the Asian Development Bank had written a letter seeking to exit from gas firm Petronet LNG.

Petronet was founded by state-run firms IOC, ONGC, Bharat Petroleum Corp and Gail (India) that together own 50 per cent stake.