According to TK Ananth Kumar, the company has taken up the issue that this kind of burden on upstream companies will not be sustainable with the government and also with Kirit Parikh, who is heading the oil committee.
OIL is already "gearing up" for meeting the formalities around the fund raising - which would be through loans or issue of bonds - as it has to pay Videocon, from whom it is jointly acquiring 10 percent interest in the giant gas field in Rovuma Area 1 offshore block, by September or October
Oil India plans to raise 80-90 percent of $1 billion through overseas debt
TK Ananth Kumar, director-finance, Oil India said, "Every one dollar hike will translate to over Rs 400 crore growth in topline.†He also said that the hike will lead to higher investment in exploration activities of the company."
The CCEA on Thursday will take a call on a new gas price formula, one that hikes gas prices to USD6.77/mmbtu from the current USD 4.2/mmbtu.
Oil exploration companies like Oil India are looking forward for govt nod to hike price from the current 4.2/mmBtu.
TK Ananth Kumar, CFO, Oil India says that there have been talks regarding the increase in gas prices for quite some time and the FM indicated that the gas-pricing policy would be finalised soon.
T K Ananth Kumar, Director - Finance, Oil India in an interview to CNBC-TV18, said overall the OFS saw a good participation from all segments. It was 2.6 times over subscribed, so it can be called an overall success, he added.