14000 crores as subsidy to Oil Cos

The government will give Rs 14,000 crore in cash to Indian Oil, Bharat Petroleum and Hindustan Petroleum to make up for the losses incurred on selling fuel below cost in the first quarter of 2010-11 fiscal.

The Finance Ministry today sought parliamentary approval for additional spending of Rs 68,294.30 crore that included Rs 14,000 crore "for providing compensation to oil marketing companies towards estimated under-recoveries on account of sale of petroleum products."

Retailers IOC, BPCL and HPCL lost about Rs 20,275 crore on selling petrol, diesel, domestic LPG and kerosene below cost in the first quarter of this fiscal. Of these, losses of upstream firms like Oil and Natural Gas Corp (ONGC), made up for one-third or Rs 6,690.68 crore.

Indian Govt issues INR 10,000 crores worth Oil Bonds

March 23/09 - The Special Bonds are being issued at par to Indian Oil Corporation (Rs 5812 crore), Bharat Petroleum Corporation Limited (Rs 2144 crore) and Hindustan Petroleum Corporation Limited (Rs 2038 crore) on March 23, 2009, Monday.

Investment in these special bonds by the banks and insurance companies willnot be considered as eligible as an investment in government securities for their statutory requirements.But such investment by the insurance companies will be eligible to be reckoned as investment under "other Approved Securities" category as defined under Insurance Regulatory and Development Authority (Investment) Regulations, 2000.

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The investment by the Provident Funds, Gratuity Funds, Superannuation Funds, etc. in these special bonds will be treated as an eligible investment under the administrative order of the Ministry of Finance. The Special Bonds will be transferable and eligible for repo transactions.

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