IndianOil, HPCL and BPCL hold $5 billion in oil bonds
New Delhi   26-Jun-2012

Three big state-run oil retailers together hold oil bonds worth about $5 billion, which is likely to be the maximum amount of dollars these companies will be able to buy directly from the central bank.

There have been talks that the Reserve Bank of India may sell dollars to oil companies directly against oil bonds to reduce demand from market and contain volatility in the rupee.

IndianOil , Hindustan Petroleum Corp Ltd , Bharat Petroleum Corp Ltd hold oil bonds worth 150 billion rupees ($2.6 billion), 69 billion rupees, and 60 billion rupees, respectively, officials from the oil companies told Reuters.

The Indian rupee rallied on Monday on hopes for government measures to halt a slump in the currency, which hit a record low on Friday, with traders saying action to boost long-term foreign investment would be the most effective step.

Finance Minister Pranab Mukherjee said at the weekend that India would unveil measures on Monday but gave no details.

The RBI last sold dollars to oil companies against oil bonds between 2008 and 2009.