Crisis of bleeding oil companies

 

 

             Petroleum Ministry facilitating credit of Rs  1.2  lakh crore to help bleeding oil cos. 

            

            Banks may not feel comfortable extending credit to state-owned oil companies which being projected at $ 40 to 45 billion this FY.  

     So, the Petroleum Ministry is talking with banks to facilitate credit of Rs 1.2  lakh crore.  

 

            But oil marketing firms are not attracted because such a measure is unable to fight the huge losses.  OMC'S are losing Rs 450  

     crore a day, this when the Indian basket of crude was trading at $ 110. 

 

            Oil firms say raising prices is the only solution to overcome the liquidity sqreeze.

 

            Oil bonds are also not helping OMC'S.  And the cabinet decision to increase oil bonds from 42% to 57% of under recoveries has  

     still not been notified.