n18
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

Fadnavis's swearing-in ceremony, the biggest ever of it's kind

from firstpost

Fadnavis's swearing-in ceremony, the biggest ever of it's kind

Devendra Fadnavis, the chief minister-designate of Maharashtra, will be sworn in at the Wankhede stadium on Friday. The event will be choreographed by well known Bollywood art director, Nitin Desai.De...


Whoever has looted this country will be caught: SIT chief MB Shah on black money

from firstpost

Whoever has looted this country will be caught: SIT chief MB Shah on black money

New Delhi: The Supreme Court-appointed SIT, looking into the black money cases, on Thursday said it will go after the offenders "big or small" and will submit its report by the first week of...

J&K: Militants intensify activity as valley braces for elections

from firstpost

J&K: Militants intensify activity as valley braces for elections

On 16 October, a small fleet of Army vehicles was passing through a narrow road near the Tchakla area of Rafiabad in north Kashmirs Baramulla district when suspected militants exploded an IED, injurin...

PM Modi condoles loss of live in Sri Lanka landslide

from firstpost

PM Modi condoles loss of live in Sri Lanka landslide

New Delhi: Prime Minister Narendra Modi on Thursday expressed deep condolences over the loss of lives in a landslide in Sri Lanka that mostly destroyed homes of Indian-origin people and wished speedy ...

Who started the fire in Trilokpuri? It was pre-planned, say locals

from firstpost

Who started the fire in Trilokpuri? It was pre-planned, say locals

New Delhi: Who started the trouble in East Delhis Trilokpuri? Firstpost tried to find the answer to the question. Highly-placed sources said the entire flare-up was not accidental but pre-planned. Thi...

Sri Lanka sentences 5 Indian fishermen to death for drug smuggling

from firstpost

Sri Lanka sentences 5 Indian fishermen to death for drug smuggling

TheSri Lankan government has sentenced five Indian fishermen to death on charges of drug smuggling. The men were arrested in 2011 by the Sri Lankan navy.Sri Lankan newspaper The Daily Mirror said that...

Don't complicate situation: China warns India over constructing border posts

from firstpost

Don't complicate situation: China warns India over constructing border posts

Beijing: China's Defense Ministry has cautioned the Indian government over plans to construct 54 new border posts along disputed border territory along the Arunchal Pradesh border.Spokesman Yang Yujun...