‘India aims to limit upstream subsidy share to a third‘

‘India aims to limit upstream subsidy share to a third‘

New Delhi: India aims to limit the subsidy share of state-run exploration and production companies to one-third of the total shortfall, oil minister S Jaipal Reddy said on Wednesday.

Indian upstream companies Oil and Natural Gas Corp , Oil India and Gail sell crude oil and products to state oil marketing firms at discount to partially compensate them for loses on subsidised fuel sale.

The Indian government had raised the share of subsidy burden for upstream firms to 38.7% for the March quarter from 33.33% earlier.

The oil minister also said the problem of payments to Iran for oil purchases has been settled, but did not elaborate.

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