IOC raises borrowing limit by Rs 30,000 cr
New Delhi   22-Oct-2011

IndianOil (IOC) has got 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 daytoday 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.”

The company loses Rs 158 crore per day on selling diesel, cooking gas (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, a company official said. “We have almost exhausted all of the permitted borrowings and so we went to shareholders for raising the limit,“ the official said.