In a CNBC-TV18 exclusive, sources say that upstream company ONGC’s subsidy burden for the financial year 2012 will be around Rs 44,000-45,000 crore. Subsidy burden in FY12 stood at Rs 1,38,541 crore.
On Friday, CNBC-TV18 reported that the finance ministry had agreed to give Rs 38,500 crore for the January-March quarter as subsidy.
This means, the government had agreed to give oil marketing companies (OMC) Rs 83,500 crore in cash, out of the Rs 1,38,000 crore for FY12, which leaves a gap of Rs 55,000 crore.
ONGC,
Oil India and
GAIL India have been asked to shell out an additional Rs 1,640 crore over the Rs 53,360 crore indicated earlier as their share of the subsidy burden.
Currently, OMCs are losing nearly Rs 8 a litre. Last time the prices of diesel, LPG and kerosene were hiked on 24 June 2011. OMCs now are unlikely to absorb under recoveries on diesel, LPG and kerosene but will instead absorb an approximately Rs 4,900 crore loss incurred on petrol.
The cash payout would be on top of Rs 45,000 crore that Indian Oil Corp (IOC), Hindustan Petroleum Corp (HPCL) and Bharat Petroleum Corp (BPCL) got for the first nine months of 2011-12 financial year.
"The share of upstream companies (in total under recoveries or revenue loss) works out to be 39.7%. In 2010-11, they had borne 36.75% of the under recoveries," said an official.
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