The oil ministry has reportedly asked the finance ministry to issue bonds to cover 57% of the losses while the latter initially agreed for only 42.7% and then increased it to 50%.
Murli Deora, petroleum minister, said: We have asked 57.1% oil bonds. And the finance ministry is not ready for it. So, we have requested the finance minister to issue as much as possible.
Till now the finance ministry has issued bonds worth INR203.33 billion to compensate the losses incurred between April and December 2007. It has to issue INR150 billion worth bonds to cover the remaining period.
The loss of oil companies, including Hindustan Petroleum, Bharat Petroleum and Indian Oil due to under recoveries in the fiscal 2007 has been pegged at INR705.79 billion.
