New Delhi, Nov 10 (UNI) To compensate the Oil Marketing Companies (OMC) for their under-recoveries, the government today announced the issue of '8.20 per cent Oil Marketing Companies Government of India Special Bonds, 2023' for Rs 22,000 crore (nominal).
The Special Bonds are being issued to three Oil Marketing Companies as compensation towards estimated under-recoveries on account of sale of sensitive petroleum products during the current financial year.
The Special Bonds are being issued at par to the following Oil Marketing Companies on November 10, 2008 (Monday): (1) Indian Oil Corporation Ltd (IOCL) for Rs 11,975.51 crore; (2) Bharat Petroleum Corporation Ltd (BPCL) for Rs 4,693.73 crore; (3) Hindustan Petroleum Corporation Ltd (HPCL) for Rs 5,330.76 crore.
An official release said here the investment in the Special Bonds by the banks and Insurance Companies will not be reckoned as an eligible investmentin Government securities for their statutory requirements.
However, such investment by the insurance companies will be eligible to be reckoned as investment under 'other Approved Securities' category as defined under Insurance Regulatory and Development Authority (Investment) Regulations, 2000.
Further, the investment by the Provident Funds, Gratuity Funds, Superannuation Funds, in the Special Bonds will be treated as an eligible investment under the administrative order of the Ministry of Finance.
UNI GS AK RN2019