By IANS,
Kolkata : Indian Oil Corporation Ltd (IOC) is expecting a government subsidy of Rs.11,000 crore to lower its debt burden which might touch Rs.60,000 crore at the end of the financial year, a top company official said Thursday.
‘’The company’s current borrowings stood at Rs.55,000 crore, which might go up to Rs.60,000 crore at the end of the fiscal. However, 50 percent of the present borrowings are short term loans. Cost for the entire credit has been going up,” IOC chairman S.V. Narasimhan told reporters on the sidelines of a refinery technology meet here.
“We need to reduce our pressure on account of debts and so we would use the Rs.11,000 crore government subsidy to make up our short term borrowings,” he said.
IOC was making a loss of Rs.1.50 to Rs.2 in selling per litre of petrol, he informed.
The company’s capital expenditure for FY12 would be Rs.13,000 crore, of which 70 percent would go in setting up the Paradip refinery, he said adding the main unit of the refinery would come up by March 2012, while the others will be commissioned by November of the year.