Oil marketing companies to get oil bonds worth Rs10,300 crore
12 May 2009
The government will issue a total of Rs10,300 crore worth of oil bonds this week to the three state-run oil marketing companies - IOC, BPCL and HPCL - to compensate them for losses incurred on subsidised sale of fuel in the last fiscal.
This will be in addition to the Rs61,800 crore of oil bonds already issued to the three companies to help them overcome the revenue loss incurred on sale of petrol, diesel, LPG and kerosene in 2008-09, a petroleum ministry official said.
These companies had also received Rs32,000 crore as crude subsidy from state-run oil explorer Oil and Natural Gas Corporation (ONGC).
The three oil marketing companies had together incurred losses to the tune of Rs1,03,292 crore on fuel sales.
The fresh bond issue should help fully compensate the oil marketing companies, according to the petroleum ministry official.
