The Centre is reportedly actively considering listing ONGC Videsh—the foreign subsidiary of Oil and Natural Gas Corporation (ONGC). According to a report by news agency Reuters, the Centre has asked ONGC to list ONGC Videsh in overseas markets. 

The move is an attempt by the cash-strapped government to sell state-assets to raise funds. "A listing would also help unlock value in the unit by improving its corporate governance and efficiency," Reuters quoted from a letter from the Department of Investment and Public Asset Management to ONGC. 

The letter, sent last week, however, did not state how much of ONGC should be offered to outside investors. 

According to various media reports, the Narendra Modi-led government was actively pursuing the idea of IPO of ONGC Videsh since the past few months. 

With the Centre's Air India divestment plans failing to take off, the listing of the biggest state-owned firm's subsidiary would help the government meet its divestment targets. The Centre has set an ambitious target of raising a record Rs 1 lakh crore ($14.25 billion) from the sale of state assets in the current financial year. 

The government holds a 67.45 per cent stake in ONGC. ONGC Videsh, 100 per cent owned by ONGC, has investments in 11 producing assets in countries, including Russia, Brazil and Iran. The company suffered a huge loss between 2014 and 2017, as crude oil prices spiralled down. However, a recovery in the oil market saw ONGC Videsh earnings improving, too. In 2015, too, the government was keen on listing OVL to raise funds. However, the move was put on hold as the company was looking to increase its assets. 

ONGC Videsh was formed in 1965 to help India expand its overseas footprint. 

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