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September 03, 2007 19:08 IST
Indian Oil Corporation [Get Quote] may sell oil bonds of up to Rs 2,000 crore (Rs 20 billion) next month to partially make up for the loss it is incurring in selling fuel below the cost of production.
The company has sold around Rs 4,000 crore (Rs 40 billion) worth of bonds since April and might sell another Rs 1,500 crore (Rs 15 billion) to 2,000 crore (Rs 20 billion) worth of bonds next month, IOC Director Finance S V Narsimham told reporters.
The company is losing about Rs 80 crore (Rs 800 million) a day on sale of petrol, diesel, kerosene and cooking gas as the government has not allowed oil marketing companies to raise prices in line with the increase in international crude oil prices.
"We have bonds worth Rs 13,000 crore (Rs 130 billion) with us. Out of this, Rs 6,500 crore (Rs 65 billion) bonds were disposable which we could sell if the need arose," another company official said.
Earlier, IOC Chairman S Behuria said the government may issue between Rs 24,000 crore (Rs 240 billion) to Rs 30,000 crore (Rs 300 billion) bonds this fiscal to offset the losses of state-run marketing firms.
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