The finance ministry had recommended that the government divest 10 per cent of its stake in the proposed initial public offer of Oil India, a state-owned upstream company, said Petroleum Minister Murli Deora.

"The finance ministry has sent its recommendations and we are considering it," Deora said, adding, "We will now discuss it with our Left partners before we take a decision."

OIL is planning to offer 10 per cent of its expanded share base to the public and 1 per cent to its employees. The share offer to the public is expected to take place towards the end of the year, through which the company plans to raise around Rs 1,500 crore (Rs 15 billion).

If the government disinvests 10 per cent stake, it will earn around Rs 1,500 crore.