Public sector oil marketing companies (OMCs) have another reason to cheer with the Reserve Bank of India today allowing additional amount of bonds to be sold through the special market operations to ease the liquidity pressure on these companies. On May 30, RBI had decided to allow the three public sector OMCs "� Indian Oil Corpoation, Hindustan Petroleum and Bharat Petroleum "� to sell the oil bonds issued to them through designated banks to help them avoid selling them at a discount. It had, however, put a ceiling of Rs 1,000 crore for a single day.
In a late evening statement today, RBI said that it has decided to enhance the ad-hoc ceiling to Rs 1,500 crore a day.
So far, only IndianOil has sold bonds through the special window.
A NewsWire 18 report said that RBI bought Rs 955 crore of 8.40%, 2025 oil bond today from IndianOil. Yesterday the largest OMC encashed bonds worth Rs 950 crore and has been almost exhausting the limit alone.
The move comes at a time when crude oil prices have been hovering over the $130 a barrel mark and is putting fresh pressure on the OMCs to generate cash.
Though the government has allowed a marginal increase petrol, diesel and cooking gas prices, these companies are still facing liquidity pressure and the gains from have been eroded with the Indian basket, or the price at which OMCs buy crude, has crossed the $125 a barrel mark. On Tuesday the cost of the Indian basket was estimated at $130 a barrel.
Apart from the special window for oil bonds, RBI had also provided OMCs the facility to purchase foreign exchange through designated banks at market exchange rate.
