n18
$doaminname = 1
NEWS|Current Affairs 
   |

New Delhi: The petroleum ministry has asked for Rs 26,000 crore as fuel subsidy for the third quarter of this financial year, but the finance ministry is inclined to provide only Rs 10,000 crore cash support."We have written to the finance ministry seeking Rs 26,000 crore subsidy support for covering under-recoveries (revenue loss) on diesel and cooking fuel in Q3 as well as unmet losses of the previous fiscal," petroleum secretary Vivek Rae said.Fuel retailers lost Rs 39,725 crore on selling diesel, kerosene and domestic cooking gas (LPG) at government controlled rates in October-December 2013. Upstream companies Oil & Natural Gas Corp and Oil India Ltd will make good Rs 15,937.59 crore, or about 40 percent, of this amount.For the rest, the oil ministry wants cash subsidy, he said. "There is also some unmet under-recoveries of the previous two quarters, which we have sought from the finance ministry." Without the government subsidy, state-owned fuel retailers Indian Oil Corp (IOC), Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL) will report losses in the third quarter. HPCL is scheduled to report its earnings tomorrow while BPCL results are due on February 12, followed by IOC on 13 February.Sources, however, said the finance ministry is willing to give only Rs 10,000 crore of subsidy support for now and wants the rest to be carried forward to the next financial year. The government provided Rs 17,772 crore of cash subsidy in the first half of the current financial year. Fuel retailers sell diesel and cooking fuel at rates below the cost of production. The losses they incur are met by way of cash subsidy and support from upstream firms. For Q3, ONGC's share of the burden will be Rs 13,764.11 crore, while OIL will bear Rs 2,173.48 crore. Gas utility GAIL India did not pay any subsidy in Q3. ONGC's liability is near the record Rs 13,796.04 crore it shelled out in Q2. Sources said IOC's share of the support provided by the two exploration companies would be Rs 8,261.30 crore. BPCL would get Rs 3,971.31 crore and HPCL Rs 3,704.98 crore. During April-September, IOC, BPCL and HPCL together lost Rs 60,907 crore in revenue on selling diesel and cooking fuel. Of this, ONGC made good Rs 26,417.82 crore, OIL Rs 4,215.76 crore and GAIL Rs 1,400 crore.Sources said ONGC's subsidy burden in Q3 would be about 10 percent higher than the Rs 12,433 crore paid in the same period of the previous financial year. PTI

Downloads | Featured Wallpaper


Ek Paheli Leela

Modi seeks Saudi's help for evacuation of 400 Indians from Yemen

from firstpost

Modi seeks Saudi's help for evacuation of 400 Indians from Yemen

New Delhi: Concerned over the safety of 4,000 Indians in strife-torn Yemen, Prime Minister Narendra Modi on Monday night sought the help of Saudi Arabia as he held a telephonic conversation with King ...


J-K floods: Army deploys 20 columns, IAF choppers on standby

from firstpost

J-K floods: Army deploys 20 columns, IAF choppers on standby

Jammu: With Jammu and Kashmir facing floods onceagain after the devastating calamity last September, Armed forces have launched a rescue operation by deploying 20 columns in the state and have kept he...

Maldives govt strips Nasheed of his party membership

from firstpost

Maldives govt strips Nasheed of his party membership

Male: In a major setback to jailed former Maldivian president Mohamed Nasheed, the government on Monday stripped him from the membership of his party under a new law banning prisoners from political p...

Govt won't lower guard on security front in protecting borders: Mufti

from firstpost

Govt won't lower guard on security front in protecting borders: Mufti

Jammu: The Jammu and Kashmir government on Monday said there would be no lowering of guard on the security front along the the borders of the country."The government will not lower guard on secur...

Two more arrested in 13/7 Mumbai serial blast case

from firstpost

Two more arrested in 13/7 Mumbai serial blast case

Mumbai: The Maharashtra Anti-Terror Squad (ATS) on Monday arrested two alleged associates of top Indian Mujahideen operative Yasin Bhatkal in connection with the 2011 serial blasts in the metropolis.A...

Abu Salem moves SC against conviction in Jain murder case

from firstpost

Abu Salem moves SC against conviction in Jain murder case

Mumbai: A month after the special TADA court here sentenced extradited gangster Abu Salem to a life imprisonment in builder Pradeep Jain murder case, he has moved the Supreme Court with an appeal.&quo...

Expect spectrum sharing, trading norms in three months: DoT secretary

from firstpost

Expect spectrum sharing, trading norms in three months: DoT secretary

New Delhi: The government is expected to finalise most-awaited spectrum sharing and trading guidelines in three months, telecom secretary Rakesh Garg said today."Spectrum sharing and trading guid...