Subsidy Burden

RS Sharma, CMD, ONGC is very happy with the government's announcement of hike in kerosene price, which will help reduce the subsidy burden of these companies.

Eye better Q4, clarity on subsidy formula soon: ONGC

The company paid Rs 9,458 crore in fuel subsidy during the quarter when its average crude oil price realisation fell to USD 76 per barrel from USD 108.19 in October-December 2013.

Fix subsidy formula at $65 for project completion: Ex-ONGC

The Oil Ministry proposed a new subsidy sharing proposal by which upstream companies ONGC and Oil India would not make any contributions towards subsidy burden if crude prices are at or below USD 60 per barrel.

Won't contribute to govt's subsidy burden in Q3, Q4: GAIL

In an interview to CNBC-TV18, Tripathi says the company has already paid Rs 1000 crore towards the oil subsidy mechanism, but it is unclear if it will be exempted from paying the same in FY16.

Oil Min to cut subsidy burden of ONGC, adjust cess payment

According to a new subsidy sharing formula, the payout of upstream oil producers like ONGC is to be reduced to the extent of Rs 4,500 per tonne oil development cess they pay to the government, sources privy to the development said.

Oil subsidy falls short of Rs 42,200cr for Mar qtr: Moody's

Moody's also warned that failure to fully reimburse OMCs will be credit negative. While we do not expect government to under-compensate OMCs, the credit metrics of OMCs will weaken should such a scenario materialise as their profits will decline and borrowings will increase.

20% tariff cut to hurt sector, hold Tata Power: Antique

In the last 6-8 months, fair and remunerative price (FRP) had gained momentum, due to which the dependence of these distribution companies (DISCOMs) on banks funding had reduced substantially.

Subsidy burden becoming 'backbreaking': ONGC

"Ultimately what is important is how much the government is looking to take the burden," ONGC chairman and managing director Sudhir Vasudeva said.

Realisation to depend on subsidy, oil prices: ONGC

ONGC chaiman Sudhir Vasudeva said going forward gross realisations would depend on oil prices and subsidy burden although the latter is expected to show a year-on-year decline in FY14.

Subsidy burden: Oil min seeks higher compensation for OMCs

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.

Subsidy burden in FY14 will not be worse than FY13: ONGC

If the rupee trades at around 62/USD and the oil price is about USD 110/barrel then the subsidy burden would be something like Rs 159,000 crore, which is just about the same as last year which was Rs 1,61,029 crore.

Govt to bear Rs 11,000cr subsidy for power in FY15: Sources

The government is likely to bear around Rs 11,000 crore of subsidies for the power sector in FY15. The subsidy burden is likely to rise n the year to come, reports CNBC-TV18's Siddharth Zarabi.

India scrambling to cut oil bill inflated by sinking rupee

India is looking at desperate measures to cut the country's oil costs by nearly USD 20 billion after the rupee slid to record lows. It has left the country with an oil bill 50 percent higher than on May 1.

Invest aggressively in OMCs now; top pick BPCL: Macquarie

The overall scope for investment in oil and gas sector is good and one should invest aggressively in it, says Jal Irani of Macquarie. He told CNBC-TV18 that easing subsidy burden, gas price hike next year will make these stocks look attractive.

ONGC's Q1 subsidy burden around Rs 12300cr

For Q1, the subsidy burden has fallen by about 48 percent and that is why upstream companies are now paying Rs 15,000 crore, which is the same as last year and the rest is being paid by the government, which is around 40 percent; 60 percent is coming from upstream companies

Govt may alter diesel, LPG pricing

The government is likely to alter the way diesel and cooking fuels are priced to reduce its subsidy burden, which appears to be spiralling out of hand due to the falling rupee.

See upside on price hike; no message on subsidy yet: ONGC

There may be some upside to the company's margins with the gas price hike implementation, said Aloke Kumar Banerjee of ONGC. He added that the impact would also be felt on the overall investment scenario in the oil and gas sector.

Govt not to bear higher subsidy on gas-price hike: Montek

Planning Commission deputy chairman Montek Singh Alhuwalia believes that the governmet should not bear higher subsidy due to the hike in gas prices.

See relief rally, earnings upgrade for OIL, ONGC: Antique

Rustagi says that with the government compensating almost one lakh crore, OMCs may see a five-seven percent earnings upgrade for FY13. Rustagi‘s optimism is not restrained to FY13 only.

AP govt to cushion domestic users from power tariff hike

Facing heat from the Opposition and a section of ruling Congress, Andhra Pradesh chief minister N Kiran Kumar Reddy announced that the state would bear an additional subsidy burden of Rs 830 crore to ease the burden on domestic power consumers.

OilMin gung-ho on plans to raise Rs 2kcr from Oil India OFS

CNBC-TV18's Nayantara Rai reports, quoting sources, that the government is planning to raise about Rs 2,000 crore from the offer-for-sale (OFS) issue of Oil India.

ONGC's FY12 subsidy burden seen at Rs 45,000cr: Sources

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.

Oil supply from Iran has reduced: FM

Speaking to CNBC-TV18 after meeting with the IMF and World Bank in Washington DC, finance minister Pranab Mukherjee explained reasons for India's high subsidy burden. He also said that the supply of oil from Iran has substantially reduced.

Budget 2012-13: Pranab frees LNG from customs duty, levies cess on crude

Hence, there is an emphasized need for policies that could fuel further growth in the sector and hence this is what the sector had expected from the Union Budget 2012-13.

Budget Live: Budget 2012 aims to ease subsidy burden

Finance Minister Pranab Mukherjee proposed trimming the government's subsidy burden and called for speeding the pace of economic reforms, which have been stalled by political gridlock, in his budget speech on Friday.