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The central government of India has recently issued a number of bonds having a total valuation of Rs 11,256.92 crore to three PSU oil marketing companies on Friday. The officials from the government have stated that the bonds were issue with a view to compensate the companies for their under-recoveries that they are facing due to the rising crude oil prices in the global market. The government has also stated in an official statement released on Friday that the bonds will be having a coupon rate of 7.95 per cent and they were also going to be matured in the year of 2025.
The bonds have been issued under the name of "The Government of India Special Bonds" and the government has issued the bonds worth Rs 6,362.25 crore to the Indian Oil Corporation. The other receiver of the bonds, the Bharat Petroleum Corporation Ltd has got the security equivalent to Rs 2,539.13 crore and the third PSU company, the Hindustan Petroleum Corporation Ltd has got bonds worth Rs 2,355.54 crore. The government also stated in the statement that it would not consider the banks and insurance companies that would invest in these bonds as part of a mandatory requirement for them to park funds in government bonds.
According to one of the top officials of the government further said that the government would treat the investments by provident funds, gratuity funds and superannuation funds as eligible investment under an administrative order of the Finance Ministry. He added that a Group of Ministers on fuel prices is also considering the possibility of hiking the rates of petroleum products in the country at the moment. The Group of Ministers is being led by the External Affairs Minister Pranab Mukherjee. The official also said that the central government is planning to take a final decision on raising fuel prices by the next week and the Petroleum Minister, Mr. Murli Deora said that any such increase would definitely be minimal.
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| Posted : 1/21/2008 |
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