GOVERNMENT OF INDIA

MINISTRY OF PETROLEUM AND NATURAL GAS

LOK SABHA

UNSTARRED QUESTION NO: 3392

ANSWERED ON:15.04.2010

FINANCIAL ASSISTANCE TO OIL COMPANIES

ANANT KUMAR HEGDE

(a)whether Oil and Natural Gas Corporation, Oil India Limited and GAIL India Ltd. provided financial assistance to bail out Indian Oil Corporation, Hindustan Petroleum Corporation Ltd. and Bharat Petroleum Corporation Ltd.

(b)if so, the assistance provided for the purpose, Company-wise;

(c)whether the dividend of these companies has reduced as a result thereof;

(d)if so, the reaction of the Government in this regard;

(e)whether this financial assistance had the approval of the Government; and

(f)if so, the details thereof?

Will the Minister of PETROLEUM AND NATURAL GASbe pleased to state:-

ANSWER

MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS

(SHRI JITIN PRASADA)

 (a) to (f):The details of the price discounts given by the upstream oil PSUs to the Public Sector Oil Marketing (OMCs) during the years 2007-08 and 2008-09 are as under:

 (Rs. crore) Upstream Oil Companies 2007-08 2008-09

ONGC 22000 27374

OIL 2307 2932

GAIL 1401 1694

TOTAL 25708 32000

OMCs

IOC 14324 18064

HPC 5409 6618

BPC 5975 7318

TOTAL 25708 32000

 In addition ONGC and OIL provided Rs.943 crore during 2008-09 as compensation for the import losses of the three OMCs

The details of the rate of dividend paid by the Upstream Oil Companies during the years 2007-08 and 2008-09 are given below:

Upstream Oil Companies 2007-08 2008-09

ONGC 320% 320%

OIL 275% 305%

GAIL 100% 70%

The price discounts given by the upstream oil PSUs to the OMCs are a part of the equitable burden sharing mechanism which the Government has been following, to insulate the consumer from the full impact of high and volatile international oil prices