IOC borrowings touch Rs 79,000 cr
New Delhi   14-Dec-2011

State-owned IndianOil (IOC) said its borrowings have risen to over Rs 79,000 crore, as it lost a record Rs 227 crore per day on selling diesel, domestic LPG and kerosene at controlled rates. “It (borrowings) is more than Rs 79,000 crore at present,” IOC chairman R S Butola said.

The company is hoping to get about Rs 16,000 crore in compensation from the government by early next month to make up for part of the losses it incurred on selling the three fuel in the first half of current financial year. Parliament on Tuesday approved additional spending by the government, including payment of Rs 30,000 crore to state fuel retailers as subsidy. IOC, the market leader, would get about Rs 16,000 crore out of that.

Cash subsidy from the government “will give us some respite for next couple of months”, he said.

While crude oil ruling at over $100 per barrel and rupee depreciating to its all time low of Rs 53.29 to a US dollar has made oil imports costlier, the government has not allowed oil firms to adjust retail fuel prices in line with the cost. Butola said IOC is estimated to lose Rs 73,605 crore in fully 2011-12 financial year. “This should be seen in comparison to the under-recovery (revenue loss) of 2010-11,” he said.