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Subsidy: ONGC, Gail to pay crores
July 28, 2004 19:03 IST
Oil and Natural Gas Corporation, Gas Authority of India and Oil India Ltd will pay Rs 1,200 crore (Rs 12 billion) to the state-run oil marketing firms for the losses they suffered during the first quarter for selling LPG and kerosene below the cost.
While ONGC will pay Rs 800 crore (Rs 8 billion), GAIL will shell out around Rs 250 crore R%s 2.5 billion) and OIL the remaining Rs 150 crore (Rs 1.5 billion).
In turn, Indian Oil Corporation including IBP will receive around Rs 700 crore (Rs 7 billion), while Hindustan Petroleum Corp and Bharat Petroleum Corp will share the remaining spoils equally, industry sources said.
ONGC, GAIL and OIL have been asked by the government to bear one-third of the estimated Rs 3,600 crore (Rs 36 billion) losses IOC, HPCL and BPCL suffered during the first quarter of 2004-05.
"The subsidy sharing is limited only for the first quarter," sources said, adding scheme for the remaining part of the year will be worked out later.
Last year the government had directed ONGC and GAIL to bear a third of the losses incurred by the oil marketing companies on LPG and kerosene sale during the entire year.
ONGC had contributed Rs 2,690 crore (Rs 26.9 billion) in 2003-04 while GAIL had chipped in Rs 427 crore (Rs 4.27 billion).