ONGC along with OIL India & Gail may be forced to shell out another Rs 3000 Cr
2009 May 15
There are reports which suggest that ONGC along with OIL India and Gail may be forced to shell out another Rs 3000 crore. The move is to seek additional funds from ONGC breach of the earlier promise to restrict subsidy burden to Rs 32,000 crore for upstream companies. The government is determined to help OMC’s post a profit figure in this fiscal. Additional funds from ONGC will bridge the losses due to delay in oil bond issuance.Government is already providing trade parity prices to OMC’s. Total under-recovery for FY09 is at Rs 1.03 lakh crores. Oil bonds have been issued of about Rs 61,000 crore. Upstream companies have already contributed Rs 32,000 crore. While additional oil bonds of Rs 10,300 crore are expected.
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