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President of India Narendra Modi. Image courtesy of Wikimedia Commons.

The Indian government approved the sale of a 5 percent stake in the state owned Oil & Natural Gas Corporation (ONGC) Wednesday as part of a larger divestment plan.

The sale could be worth as much as $3.1 billion.

The Indian government will also sell a 10 percent stake in Coal India and a 11.36 percent stake in National Hydroelectric Power Corporation.

India currently holds a 68.94 percent stake in ONGC.

In 2012, the Indian government sold a 5 percent interest in ONGC for $2.1 billion.

Proceeds from the sales will be used to reduce the government’s deficit and finance infrastructure projects.

ONG produces 1.2 million barrels of oil equivalent per day, two thirds of India’s oil and gas.

The company currently has a market value of $57 billion.