India said it had appointed bankers to manage the proposed offers of 10 percent stakes in state-run exploration firm Oil and Natural Gas Corp Ltd (ONGC) and natural gas supplier Gas Authority of India Ltd. (GAIL).
"The Cabinet Committee on Disinvestment met and gave an in-principle approval to sell 10 percent equity in GAIL and ONGC," said the privatization ministry.
"The issues are being targeted within this financial year to March 2004."
Kotak Mahindra Capital Co Ltd, DSP Merrill Lynch Ltd and Morgan Stanley Private Ltd have been selected to manage the proposed public offer of up to 10 percent in highly profitable ONGC, said the ministry.
Similarly, ICICI Securities Ltd and HSBC Capital Markets Ltd have won the mandate to manage the GAIL's public offer.
Privatization Minister Arun Shourie had earlier told reporters the offers would be made in the domestic market and were likely to net the government around 125 billion rupees at current prices.
Shourie has spearheaded India's ambitious privatization drive but his efforts were blocked by a court order in September barring the sale of two national petroleum giants, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd.
Experts say equity stake sales in ONGC and GAIL are aimed at helping New Delhi reach this year's privatization revenue target of 132 billion rupees.
(1 usd = 45.6 rupees)