India: IOC May Shut Down Refineries as Debt Mounts
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Friday, 11 November 2011 |
Indian Oil Corporation (IOC), the country’s largest oil marketing company, has warned that it may shut down refineries as the cost of importing crude product is too great. “Our debt-equity ratio is 1.66. We have a debt of Rs73,000 crore in our books. If the situation does not improve, we may not be left with money to import crude from the international market and we will have to shut some of our refineries,” said Chairman and Managing Director RS Butola.
The company, which announced a net loss of Rs7,485.55 crore for the quarter ended September 30 attributed the results to an increase in under-recoveries on fuel sales. It has not received any compensation from the Government for selling fuel at a loss. “The finance ministry needs to pay us Rs23,000 crore as compensation for the first two quarters, but we have not heard anything from them till now,” said Butola.
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