State-run oil firms pay lower dividendFebruary 26th, 2009 - 9:20 pm ICT by IANS
New Delhi, Feb 26 (IANS) State-run oil companies have made a dividend payment of Rs.70.04 billion (Rs.7,004 crore) this fiscal, down from Rs.73.35 billion paid in 2007-08, a union minister said here Thursday.
“Oil marketing companies (OMCs) have paid less dividend during 2008-09 as compared to previous year as they reported loss during the period April to December, 2008,” Minister of State for Petroleum Dinsha Patel told the Lok Sabha.
The dividend payment by the three OMCs - Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp - is decreasing for the last three years due to under-recoveries and rupee depreciation, he said.
In 2006-07, the OMCs had paid Rs.81.5 billion in dividend.
To plug this hole, the OMCs had asked for several government measures, including enhancement of credit limits, timely liquidation of oil bonds and compensation for interest liability for 2008-09.
The government had then agreed to a burden-sharing mechanism, under which upstream companies will contribute Rs.320 billion with the rest of the under-recoveries compensated in oil bonds.