The ministry's plan is simple. IOC, ONGC and Gail are to dispose of the shares of each other acquired through a 1999 cross-purchase programme in the open market. How the three do so is up to them … under ministry supervision, of course.

However, sources within the Indian government have said that this plan was "an 'in-principle' clearance and the final modalities would still need to be worked out between the ministry and the oil sector company." Once the mechanics have been worked out, said the sources, a formal announcement will be made.

Currently, ONGC holds 9% of IOC's shares and 5% of Gail's. IOC holds 9.5% of ONGC's shares and 5% of Gail's. Gail holds around 2.5% of ONGC's shares.