The oil ministry is reported to have been seeking higher compensation for oil marketing companies (OMCs) given in the light of the upcoming divestment of the state-owned Indian Oil Corporation (IOC), reports CNBC- TV18's Nayantara Rai.
The government, on Wednesday, had sanctioned Rs 8,772 crore to OMCs to make up for the loss of revenue on sale of diesel and cooking fuel in the July-September quarter. Also read: OMC forex window likely to taper over next 1-2 weeks The demand could imply another face off between the ministries given the ongoing impasse over parity pricing for the under recoveries. Sources say that Oil Minister Veerappa Moily had written to the finance minister to compensate OMCs at higher levels to ensure that IOC does a roadshow on November 12 for its divestment by registering nominal profit. Contribution of IOC has been set at Rs 16,730 crore; in line with the Rs 66 per barrel, while ONGC share comes up to Rs 13,796 crore. Oil India may be asked to shell out more. With inputs from agenciesDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
