11/29/2012 9:00 PM Thursday
The Oil Ministry has sought Rs 105525 crore from the Ministry of Finance this fiscal to subsidise diesel and cooking fuel, the Lok Sabha was informed. State-owned fuel retailers are likely to end the fiscal with a revenue loss of over Rs 163000 crore on the sale of diesel, domestic cooking gas (LPG) and kerosene at government-controlled rates that are way lower than the cost. Of this, close to Rs 60000 crore will come from upstream companies ONGC, Oil India and GAIL India. For the rest, the Oil Ministry has asked the Ministry of Finance to give a cash subsidy.
ONGC Videsh, the overseas investment arm of the state-run Oil & Natural Gas Corporation, plans to raise up to USD 900 million by issuing a dollar bond in the first quarter of 2013 to fund a recent acquisition of oil fields in Azerbaijan. The company will be going overseas for the issue because it is cheaper to borrow money in dollars, This also makes sense because ONGC Videsh purchased its assets in dollars and its liabilities are in dollars as well. In September, the company agreed to buy a 2.7 per cent stake from Hess Corporation in the Azeri, Chirag and Guneshli fields in Azerbaijan and a 2.4 per cent interest in the associated BTC pipeline for a total of USD 1 billion. It plans to invest USD 20 billion on acquiring assets overseas to achieve its target of a seven-fold increase in the oil and gas output from overseas assets by 2030.
The Cabinet Committee on Economic Affairs has approved 9.5 per cent paid-up equity capital (about 78.33 crore shares) in state-run power producer NTPC out of the government's shareholding of 84.50 per cent, a proposal by Department of Disinvestment, Ministry of Finance. At the current market price, the government hopes to garner around Rs 13000 crore from this stake sale. Post-disinvestment, the government stake would come down to 75 per cent, which would also help NTPC to comply with the minimum public shareholding norms.
Find More Articles on: DSIJ Magazine, PSU Corner, Product, Large Cap