Govt plans Rs 20,000-cr aid to oil firms hit by soaring costs: Report
India plans to pay about Rs 20,000 crore ($2.5 billion) to the state-run fuel retailers, such as Indian Oil Corp., to partly compensate them for losses and keep a check on cooking gas prices, according to people familiar with the matter.
The oil ministry has sought a compensation of Rs 28,000 crore, but the finance ministry is agreeing to only about a Rs 20,000-crore cash payout, the people said, asking not to be identified as the discussions are private. The talks are at an advanced stage but a final decision is yet to be taken, the people said.
The three biggest state-run retailers, which together supply more than 90% of India’s petroleum fuels, have suffered the worst quarterly losses in years by absorbing record international crude prices.
