The government has decided to explore the divestment of retail operations of Indian Oil Corporation after splitting the sole Fortune 500 company into two or three assets.

The government would seek a legal opinion on the soundness of the plan and the ministry of divestment has been authorised to look for judicial option, Divestment Minister Arun Shourie said.

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He said a kind of swap agreement was being looked into wherein divestment in IOC could take place, while some additional assets could be transferred to HPCL and BPCL which would continue to be government companies till a final decision was take.

"The ministry of divestment has been authorised to look into judicial options in consultation with Attorney General, Solicitor General and the law ministry," Shourie said, emphasising that the government was committed to economic reforms as it is evident from the fact that CCD on Friday cleared six cases for divestment.