The Hindu Business Line : IOC plans to sell bonds worth Rs 2,000 cr in October

New Delhi, Sept. 3 Indian Oil Corporation Ltd plans to sell between Rs 1,500 crore and Rs 2,000 crore worth oil bonds in October. The IOC’s Director Finance, Mr S.V. Narasimhan, said, “This month, we have no plans to sell any bonds. But in October, we plan to sell Rs 1,500-2,000 crore oil bonds.”

He told newspersons at sidelines of a function here that IOC has a saleable bond portfolio worth Rs 6,500 crore out of a total Rs 13,000 crore bonds. Mr Narasimhan said the company has sold oil bonds worth Rs 4,000 crore since April. IOC may not be able to post profit in the quarter ending this month unless the Government issues fresh oil bonds for the current financial year.

Oil bonds

IOC had posted a Rs 1,468 crore net profit in April-June quarter, backed by rupee appreciation against the US dollar coupled with highest ever gross refining margins. In 2006-07, the Government had issued oil bonds worth Rs 24,121 crore to oil marketing companies to compensate for their revenue loss from subsidised sale of oil products.

For the current financial year, the Petroleum Ministry has sought around Rs 19,000 crore worth of bonds. The estimated revenue loss of the state-owned oil marketing companies on sale of petroleum productions is around Rs 50,000 crore during the current financial year.

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