The Oil Ministry, on Monday, gave green signal to a proposal that aimed at partial disinvestment of government's stake in two of the countries largest oil and gas players Indian Oil Corporation (IOC) and Oil and Natural Gas Corporation (ONGC).

The move is expected to generate Rs.24,000 crore for the government during the current fiscal.

As per the proposal, while the government aims to offload 10 per cent stake in IOC, it will disinvest five per cent in ONGC. IOC disinvestment will be first one to go to the floor.

The names of the two companies, earlier which were not there in the list of PSUs in which the government aimed to disinvest this year, were sent to the approval of the Oil Ministry a few weeks ago by the Ministry of Finance.

As per basic calculations based on today's share prices of the companies, the disinvestment, which will take place through Follow-on Public Offers, will generate Rs.9,000 crore for IOC and Rs.14,405 crore for ONGC.

Post divestment Government's stake in ONGC and IOC will drop to 74.14 and 78.92 per cent respectively.