The Hindu Business Line : `Enough forex reserves to meet crude import needs'

THE Petroleum Minister, Mr Mani Shankar Aiyar, on Tuesday said that the rising global crude oil prices and severe volatility in the international oil market was a matter of concern, but India has sufficient foreign exchange reserves to meet its crude oil import requirements.

He said that prices at $58 a barrel are unprecedented and there is considerable speculative volatility in the market.

Speaking to newspersons at the sidelines of the Chemtech-Pharmabio 2005 awards for leading innovators, the Minister reiterated his view that there was no cause for `panic'.

Overall the financial year 2005-06 should see greater stability in prices globally, the Minister said, and added that he expected them to ease sooner rather than later.

When asked whether there would be any price hike, the Minister said `not immediately'. "The Cabinet Secretariat has been communicated about the situation," he said. On whether the oil companies were suffering losses, Mr Aiyar said, "none of them are facing enormous losses, but there is under recovery of the revenue''.

Earlier, the Minister gave away awards to leading innovators. Some of the awardees included Mr M.S. Ramachandran, former Chairman, Indian Oil Corporation, Mr Ajay Piramal, Chairman of Nicholas Piramal India Ltd, Ms Kiran Mazumdar Shaw, Chairman and Managing Director of Biocon Ltd, and Dr Anji Reddy, Chairman of Dr Reddy's Laboratories.

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