India: Government Agrees Oil Bonds For State Oil Companies
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Thursday, 15 May 2008 |
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The government has decided to compensate state oil companies by issuing oil
bonds to the extent of 50 per cent against incurring under-recoveries
during 2007-08 on sale of petrol, diesel, kerosene and domestic LPG at
subsidised prices.
Although the decision to issue the second instalment of oil bonds is
not in accordance with the demands raised by the Petroleum and Natural
Gas Ministry, the decision has come as a big relief to the bleeding
OMCs, who are faced with hiked under-recoveries.
The second instalment of oil bonds comes after a meeting between
Minister of Petroleum and Natural Gas Murli Deora and Finance Minister
P. Chidambaram on Tuesday. Oil bonds of the value of Rs.35,300 crore
would be issued to the OMCs. As of now, oil bonds of the face value of
Rs.20,333 crore covering the period April-December 2007 have been
received.
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