OIL looks to liquidate short term debt raised for NRL buy in current fiscal

Oil India (OIL) is looking to completely liquidate its short-term debt of Rs 4,300 crore in the current financial year itself. According to company officials, Rs 2,350 crore of this short-term debt has been repaid. This amount was raised by OIL to acquire Bharat Petroleum Corporation’s stake in Numaligarh Refinery (NRL) for Rs 8,676 crore. In all, OIL had raised Rs 6,300 crore, including Rs 2,000 crore of long-term debt, for this transaction. The push to liquidate this debt will also mean no more acquisition or fund raising being planned this year.

Speaking to Business Standard, OIL’s Director (Finance) Harish Madhav said, “We have liquid funds of about Rs 1,800 crore including cash surplus of about Rs 400 crore in hand.