Feb. 16 (Bloomberg) -- Oil & Natural Gas Corp., India’s biggest energy exploration company, and other state-run explorers will pay refiners 320 billion rupees (.6 billion) as subsidies for selling fuels below cost in the year ending March, the government said.
The amount is part of the compensation for Indian Oil Corp., the country’s largest refiner, and its state-run counterparts, which may lose revenue of 1.05 trillion rupees this year, said R.S. Pandey, the top bureaucrat in the nation’s Oil Ministry, according to a government statement yesterday.
The refiners will get bonds from the government to cover the remaining amount, Pandey said. The accounts will be settled at the end of the financial year, he said.
The government gave refiners 219.4 billion rupees of bonds on Feb. 4, 220 billion rupees on Dec. 23 and 220 billion rupees on Nov. 10 to cover the shortfall for the year ending March, according to the Finance Ministry.
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