Govt. issues Rs 103.06 bn bonds to IOC, HPCL & BPCL

The government today issued bonds worth over Rs 103.06 billion to three oil marketing public sector undertakings (PSUs) to compensate them for the losses incurred on account of selling petroleum products below market price. While bonds worth Rs 62.07 billion were issued to Indian Oil Corporation (IOC), Rs 20.33 billion worth bonds were given to Hindustan Petroleum Corporation (HPCL) and Rs 20.65 billion bonds were given to Bharat Petroleum Corporation (BPCL). The government of India (GoI) special bonds carry coupon rate of 8.20% and would mature in 2024. The bonds were issued to these companies as they incur losses by selling petrol, diesel kerosene and domestic LPG below cost. The special bonds are being issued to three oil marketing companies (OMCs) as compensation towards the estimated under-recoveries on account of sale of sensitive petroleum products during the current financial year.