The government has issued oil bonds worth Rs 10,000 crore to the three oil marketing companies (OMCs) to compensate for their under-recoveries on the sale of petroleum products during the current financial year.
Indian Oil Corporation has been issued oil bonds worth Rs 5,817.27 crore, while Bharat Petroleum Corporation has been issued bonds worth Rs 2,144.32 crore. Hindustan Petroleum Corporation has got bonds worth Rs 2,038.41 crore. Prior to this, bonds worth Rs 60,967 crore had already been issued.
The OMCs are estimated to close the financial year 2008-09 with under-recoveries of Rs 1,03,908 crore. The value of total government bonds issued for the year now stands at Rs 70,967 crore, while another Rs 32,000 crore has been absorbed by the upstream companies.