The Hindu Business Line : IOC to get major chunk of oil bonds

INDIAN Oil Corporation Ltd is to get a major chunk of the `seven per cent Oil Companies of India Special Bonds 2012' issued recently. The Government had announced the release of the second tranche of oil 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.

According to a senior Petroleum Ministry official, IOC is to get Rs 2,320.80 crore followed by Bharat Petroleum Corporation Ltd (BPCL) Rs 1,044.06 crore. The bonds have been issued at par.

Following the dismantling of the administered price mechanism 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 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. 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.

Share of the others: While Bongaigaon Refinery and Petrochemicals Ltd is to get Rs 10.63 crore, Kochi Refiners Ltd will receive Rs 264.33 crore. Hindustan Petroleum Corporation Ltd (HPCL) share will amount to Rs 777.02 crore, and IBP will get Rs 52.90 crore. ONGC's share amounts to Rs 851.90 crore and Oil India Ltd will get Rs 248.30 crore.

GAIL (India) Ltd will receive Rs 9.59 crore, Mangalore Refinery and Petrochemicals Ltd Rs 27.27 crore, NRL Rs 64.30 crore, and Chennai Petroleum Corporation Ltd Rs 91.70 crore, respectively.

The investment in the bonds will not be reckoned as an eligible investment for the purpose of statutory liquidity ratio (SLR).

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