Close on the heels of quarterly results of oil companies and a possible 5 percent divestment in ONGC, the Oil Ministry has proposed a new subsidy sharing proposal with the Finance Minister.
Sources say as recently as last week, Oil Minister Dharmendra Pradhan has proposed upstream companies ONGC and Oil India should not make any contributions towards subsidy burden if crude prices are at or below USD 60 per barrel.
They will, however, take upon 85 percent of the burden if crude ranged between USD 60 and 100 and 90 percent if oil stays above USD 100.
Sources told CNBC-TV18 that the Oil Ministry has also sent North Block supplementary demand for grants for FY15 based on the new proposal.
It says that under recoveries in FY15 will be Rs 77,594 crore and upstream contribution in the second half of the fiscal will be at Rs 5078 cr. it has sought an additional budget provision of Rs 18254 crore for FY15.
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