New Delhi: The finance ministry on Tuesday turned down the demand of the petroleum ministry to issue oil bonds worth Rs44,000 crore to partially offset the Rs77,000 crore losses suffered by oil marketing companies during 2007-08 due to a rise in global crude prices.
“We have asked 57.1% oil bonds. And they (the finance ministry) are not ready for it. So we have requested him (finance minister P. Chidambaram) to issue as much as possible,” petroleum minister Murli Deora told reporters after meeting the finance minister.
When asked about the deliberations at the meeting, Chidambaram declined comment. To a question on increasing domestic fuel prices, Deora said there was no discussion on it and that it was a policy decision that could be taken only by the Cabinet.
Additional secretary in the petroleum ministry S. Sundaresan said: “We had a very satisfactory discussion. The petroleum minister has explained the problems faced by the oil marketing companies and we will take a decision very soon...” Sources said the finance ministry has asked the petroleum ministry to rework the “calculation of under-recoveries”.