Oilcos get Rs 22k cr bonds

In a move to help cash-strapped oil marketing companies reeling under huge under-recoveries, the government on Monday issued Rs 22,000 crore special bonds to IOC, BPCL and HPCL. “The special bonds are being issued to three oil marketing companies as compensation towards estimated under-recoveries on account of sale of sensitive petroleum products during the current financial year,” the finance ministry said.

While Indian Oil Corporation (IOC) will be issued bonds worth Rs 11,975.51 crore, Bharat Petroleum Corporation (BPCL) will get Rs 4,693.73 crore and Hindustan Petroleum Corporation (HPCL) Rs 5,330.76 crore. The three oil marketing companies have lost Rs 92,853 crore on fuel sales in the first six months (April-September) of the current fiscal and are expected to lose another Rs 35,282 crore in the second half of 2008-09. READ AT TIMES OF INDIA

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