ONGC submits new subsidy sharing proposal to Oil Ministry

Hoping to have a proper subsidy sharing mechanism in place before going to the market with its follow on public offer, ONGC has submitted a new subsidy sharing proposal to the oil ministry.

Sources say ONGC's new proposal has two to three formulations, and is similar to the recommendations it had made to the Kirit Parikh committee last year. The Kirit Parikh committee had accepted ONGC's proposal of a 20% special oil tax for a crude retention price of 60 dollars per barrel, 40% special tax for crude between 70 and 80 dollars, 60% between 80 and 90 dollars and 90% beyond 90 dollars per barrel. Sources say that while the new proposal submitted today works with the same slabs, the special oil tax rates have been tweaked, in an attempt to make it easier to get government approval. Meanwhile, CNBC-TV18 also learns that six bankers have been shortlisted for
ONGC's FPO which is expected to hit the markets on March 15. The shortlisted bankers are Citi, Nomura, Merill Lynch, Morgan Stanley, JM Financial and Enam, each of whom have put in a bid of Rs 1.