The Hindu Business Line : IOC seeks interest on oil pool account arrears

The company, which got a major chunk of the `seven per cent Oil Companies Special Bonds 2012' issued recently, has written to the Ministry to consider three years' interest as these bonds were payable three years ago (2002).

A senior IOC official said the Government had announced the release of the second tranche of oil bonds amounting to Rs 5,762 crore to oil companies in order to liquidate the balance payable to these entities from the oil pool account.

IOC had got Rs 2,320.80 crore, he said, adding that the company has sought a three-year interest on the arrears from the Government. He, however, refrained from disclosing the interest rate.

Asked about the Petroleum Ministry's response, the official said IOC was still waiting for a reply.

The oil bonds were to convert the dues of the oil companies from the oil pool account into investments.

APM dismantling: 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 had 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 had requested the Finance Ministry to issue bonds amounting to Rs 5,762.85 crore to oil companies.

Asked when the company proposes to redeem these bonds, the official said that a view was yet to be taken. At present, it has been securitised with Clearing Corporation of India Ltd.

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