High-powered Committee to assess oil companies' financial position

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New Delhi, June 11 (UNI) The Government today said it has constituted a three-member Committee to examine the impact of an increase in global oil prices on the financial position of oil companies.

This will also include upstream exploration companies, refiners and downstream Oil Marketing Companies (OMCs).

The members in this high-powered committee include B K Chaturvedi, Member, Planning Commission, Dr Saumitra Chaudhuri, Member, EAC and Dr Arvind Virmani, Chief Economic Advisor.

The committee will also analyse the cash flows and the profitability of all three groups of companies so as to get a clear picture of the changes taking place in their operating positions, particularly the impact on access to credit and cash availability for their operations, an official statement said today.

It will also revisit the concept of "under recoveries" and examine the reported deficit and the real deficit faced by OMCs as a result of price constraints imposed on them.

The committee will estimate the financial needs of the refiners and OMCs in order to continue their normal business activities and to meet the energy needs of the economy and the possible sources of funds to meet their financial needs, it added.

Apart from this, it will also examine the available options for burden sharing by all stakeholders, including upstream exploration companies, refiners, downstream OMCs and stand alone refiners.


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