Decline in dividend paid by state Oil Marketing Companies
State run Oil Marketing companies' dividend to the government falls by 4.5 per cent in comparison with previous year. Last year also their dividend fell by almost 10 per cent in comparison with previous year.
This year all the oil marketing companies have given dividend of Rs. 7004.96 crores to union government. Last year it was Rs. 7335.65 crores and in financial year 2006-07 the dividend amount was Rs. 8150.28 crores.
The public sector OMCs have requested for enhancement of their credit limits; sought Reserve Bank of India’s Special Marketing Operations as a mechanism for timely and efficient liquidation of Oil Bonds; and compensation for their interest liability for 2008-09.
In view of the difficult financial position of the OMCs, the Government has recently approved a revised Burden Sharing Mechanism for 2008-09 under which the Public Sector Upstream Oil Companies will contribute Rs. 32,000 crore and the remaining under-recoveries would be compensated through issuance of Oil Bonds.
India’s junior minister for petroleum and natural gas informed parliament.
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