New Delhi: The government on Wednesday issued Rs21,942 crore bonds to oil marketing companies to compensate for their under-recoveries for selling products at prices less than those in domestic market even when the global rates touched the sky.
The 17-year bonds carry 6.90% coupon rates, an official statement said.
Indian Oil Corporation got bonds worth Rs11,943.93 crore, Bharat Petroleum Corporation Ltd worth Rs5,316.71 crore and Hindustan Petroleum Corporation Ltd worth Rs4681.36 crore.
Meanwhile, the Planning Commission on Wednesday said oil marketing companies would need much less bonds in the current fiscal, since global crude prices have crashed compared to September-October.
Chaturvedi, who held the portfolio of Cabinet Secretary and Petroleum Secretary before moving to the Planning Commission, said these firms did not need more than Rs75,000 crore of oil bonds for the current fiscal, whereas the earlier estimates stood at Rs1,50,000 crore, calculated when global rates were ruling more than $130 a barrel.
Global prices are now hovering below $40 a barrel.
Last week, the government slashed petrol prices by Rs5 a litre and diesel by Rs2 per litre to pass on the benefit of softening crude oil rates to the consumers.