No decision yet on Indian Oil Corporation’s public offer

HALDIA - The government is yet to take a decision on floating a follow-on public offer (FPO) of the Indian Oil Corporation (IOC), a top bureaucrat said here Saturday.

“There has been no decision yet on the FPO of IOC and, therefore, a question of postponement dosent arise, Petroleum and Natural Gas Secretary S. Sundareshan said on the sidelines of the dedication ceremony of a new hydrocracker unit and higher capacity of Indian Oils refinery in this East Midnapore district industrial town.

However, he said five percent share of the ONGC will be disinvested.

ONGC would disinvest five percent through an FPO likely to hit next year in March, said Sundareshan.

In a bid to assuage the state-run oil companies, which are suffering from huge under-recoveries, he said they should not worry about losses.

Solutions will be found to the problem. The finance ministry has assured us. They have no reason to fear suffering losses, he said.

“Under-recoveries” is an oil industry jargon for fuel retailers having to sell their products below the cost of production levels.

Since 2006-07, the oil companies have suffered under-recoveries between Rs.50,000 crore to Rs.1.5 lakh crore.