By IANS
New Delhi : The Indian government Friday issued additional bonds worth Rs.112.5 billion ($2.87 billion) to help state-owned oil marketing companies to reduce losses in the current fiscal (2007-08) due to their inability to sell fuel at market prices.
“The special bonds are being issued at par to Indian Oil Corp (IOC) for Rs.63.6 billion, Bharat Petroleum Corp Ltd (BPCL) for Rs.25.3 billion, and Hindustan Petroleum Corp Ltd (HPCL) for Rs.23.5 billion on Jan 18,” said an official statement issued Friday.
“The bonds are being issued to the three oil marketing companies as compensation towards estimated under-recoveries on account of sale of sensitive petroleum products during the current financial year,” the statement added.
The government earlier issued bonds worth Rs.234 billion ($5.97 billion) in the current financial year.
This takes the value of bonds issued by the government to oil marketing companies in the current fiscal to Rs.347 billion ($8.85 billion).