{"id":280666,"date":"2019-07-06T06:02:06","date_gmt":"2019-07-06T06:02:06","guid":{"rendered":"http:\/\/infralive.com\/web\/?p=280666"},"modified":"2019-07-06T06:02:06","modified_gmt":"2019-07-06T06:02:06","slug":"budget-2019-plenty-to-cheer-for-oil-and-gas-industry","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/budget-2019-plenty-to-cheer-for-oil-and-gas-industry\/","title":{"rendered":"Budget 2019: Plenty to cheer for oil and gas industry"},"content":{"rendered":"<p>Budget 2019 India: As per ICRA\u2019s estimates, there may be a shortfall of around Rs 31,000 crore in fuel subsidy for FY2019-20 versus the subsidy of Rs 33,500 crore provided for FY2019-20 (BE). This is largely on account of opening arrears of Rs 33,000 crore, which the govt had not paid the OMCs in 2018-19 on account of under-provisioning of subsidy. As per ICRA\u2019s estimates, the subsidy requirement for FY2019-20 will be Rs 31,500 crore, assuming Indian basket crude price of $70\/bbl and INR\/USD of 70. While the subsidy provided for FY2020 is adequate, the backlog will remain, necessitating high working capital borrowings for PSU OMCs. Hence the under-provision of subsidy will be a marginal credit negative for PSU OMCs. Any sharp fall in oil prices and INR appreciation will offer OMCs some relief.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Budget 2019 India: As per ICRA\u2019s estimates, there may be a shortfall of around Rs 31,000 crore in fuel subsidy for FY2019-20 versus the subsidy of Rs 33,500 crore provided for FY2019-20 (BE). This is largely on account of opening arrears of Rs 33,000 crore, which the govt had not paid the OMCs in 2018-19 on account of under-provisioning of subsidy. As per ICRA\u2019s estimates, the subsidy requirement for FY2019-20 will be Rs 31,500 crore, assuming Indian basket crude price of $70\/bbl and INR\/USD of 70. While the subsidy provided for FY2020 is adequate, the backlog will remain, necessitating high [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,240,138],"tags":[],"class_list":["post-280666","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-power-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/280666","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=280666"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/280666\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=280666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=280666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=280666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}