IOC increases borrowing limit to Rs 110,000 cr
New Delhi   22-Oct-2011

IndianOil (IOC) has got the shareholders' nod to raise its borrowing limit by Rs 30,000 crore to Rs 110,000 crore as the nation's largest fuel retailer has grown increasingly reliant on debt to meet even its day-to-day expenses.

IOC said its shareholders have through a postal ballot approved an “increase in the borrowings limit from Rs 80,000 crore to Rs 110,000 crore.“ It loses Rs 158 crore per day on selling diesel, LPG to households and kerosene at government-controlled rates, which are way below their production cost. The revenue deficit on these products is met through market borrowings, official said. IOC, which had in 2008 doubled its borrowing limit to Rs 80,000 crore, currently has gross debt of over Rs 78,000 crore.