Oil workers in India have threaten to block the privatisation of state oil companies as the government plans to accelerate its sell-off programme.

On Sunday, the cabinet approved the sale of controlling stakes in Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL), valued at 80bn rupees (�856m; $1.4bn).

There is no logic in privatising highly profitable companies like HPCL and BPCL which have been giving government regular dividends Ashok Singh Oil Sector Officers' Association

"Employees and officers of all state oil firms will go on indefinite strike the day the government announces a timetable for the privatisation of HPCL and BPCL," warned Ashok Singh, president of the 45,000 member Oil Sector Officers' Association.

Delhi's has indicated it is determined to go ahead with its ambitious privatisation programme despite strong political and union opposition.

The Press Trust of India's (PTI) has reported cabinet approval would now be sought by the first week of February for the sale of Engineers India, Shipping Corporation and Hindustan Copper.

The Economic Times reported that the government would also try to sell the State Trading Corporation (STC) and car marker Maruti Udyog by April.

State sell-off

India has sold 50bn rupees in assets so far in a bid to meet its target of raising 120bn rupees from privatisations by the end of the financial year in March.

The money will be used to cut the fiscal deficit, which will total an about 5.3% of gross domestic product.

"The privatisation policy was for revamping sick and loss-making firms and there is no logic in privatising highly profitable companies like HPCL and BPCL which have been giving government regular dividends without a single penny's budgetary support," Mr Singh said.

A large number of India's state firms, which were set up decades ago by socialist governments, are loss making but have significant assets.

The government, which currently owns 90.39% stake in Engineers India, reportedly plans to sell a 51% stake to a strategic partner along with management control and offer 10% to employees.

It holds about 80% of the Shipping Corporation of India and plans to sell 51% to a strategic partner.

Strike action

Workers prevented the sale of National Aluminium in November by blocking investors access to company sites to conduct due diligence.

"We would halt all activities in the oil sector, right from oil exploration and production to refining and marketing across the country," said Mr Singh.

A strike at Hindustan and Bharat Petroleum, which together control 40% of India's fuel market, would hit supplies to the country's 20,000 petrol stations.

The government tried to win over workers by offering them 5% of the shares in Hindustan Petroleum, which has been rejected by the union.