Business Line: To cover pool account deficit: Government issues Rup 90 bn bonds to oil majors.

The Government of India has issued Special Bonds 2009 totalling Rup 90 bn to public sector oil companies in lieu of the outstanding claims of these oil companies from the oil pool account. By issuing the bonds, the Government has also cleared considerable part of the estimated Rup 130 bn dues of the oil pool account. The claims are made by the oil companies on the Oil Coordination Committee under the Administered Pricing Mechanism, which was dismantled on 1 Apr 2002. The claims of the oil companies are subject to audit and the Government will pay the remaining amount to the oil companies after the accounts are certified by the Comptroller and Auditor-General of India. …