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Richa Mishra

New Delhi , June 27

THE Petroleum Ministry has stepped up pressure on the Finance Ministry for release of second tranche of oil bonds.

Official sources told Business Line that, the Petroleum Ministry has been pushing for it and indications are that it may find its way in first supplementary demands for grant, expected during the monsoon session of Parliament.

The nodal Ministry has asked the Finance Ministry to issue Special Government Bonds amounting to Rs 5,762.85 crore to oil companies in order to liquidate the balance payable to these firms from the Oil Pool Account.

Following the dismantling of the administered price mechanism (APM) from April 1, 2002, the Oil Pool Account was also wound up from the same date.

The Government had issued oil bonds amounting to Rs 9,000 crore on March 30, 2002, with a view to partially liquidating the outstanding of the oil companies estimated to be over Rs 14,000 crore against the Oil Pool Account. These bonds have a maturity of seven years.

It was also decided then that the balance payable to these companies from the Oil Pool Account as on April 1, 2002 would be liquidated by issuance of Special Government Bonds after completion of special audit of these accounts, as directed by the Comptroller and Auditor General of India (CAG).

On completion of the special audit, the Petroleum Ministry has requested the Finance Ministry to issue bonds amounting to Rs 5,762.85 crore to oil companies.

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