TWO state run oil firms - ONGC and IndianOil - are keen to tap the market in this fiscal after the centre set the ball rolling on fuel price decontrol. "The matter (IOC, ONGC divestment) will be considered in the course of the year," oil secretary S Sundareshan said on Tuesday.

However, disinvestment secretary Sumit Bose said no proposal has been finalized. The government has already lined up five state run firms for disinvestment in the fiscal and will identify a few more companies, Mr. Bose said, adding, "As and when we will get Cabinet approval for other companies, it would be communicated."

Apart from Engineers India (EIL), whose follow-on public offer (FPO) opened on Tuesday. Manganese Ore India, Steel Authority of India, Hindustan Copper, Coal India and Power Grid Corp are the other PSUs that form part of the Centre's sell off programme for 2010-11.

The oil PSUs and the government have been keen on launching public offers for some time built the lack of clarity on oil pricing had doubled their valuations. The Center's decisions last month to decontrol petrol prices and hike prices of diesel and kerosene will boost their prospects.

While the two firms want to tap the markets to raise funds for capital expansion, the finance ministry is looking to meet its $40,000 crore target from disinvestment proceeds through some big ticket offers.

The government holds 74.14% stake in ONGC and 78.92% stake in IOC. At the current market price of $1,262 a share, a mere 5% divestment in ONGC could fetch the government about $12,000 crore.

Meanwhile, Mr. Bose said the government expects to earn $977 crore from the 10% disinvestment in EIL.