Issue OF 8.13 % Oil Marketing Companies GOI Special Bonds

New Delhi, Oct 16 (UNI) Union government today announced the issue of '8.13 per cent Oil Marketing Companies' Government of India Special Bonds, 2021' for Rs 5,000 crore (nominal), The Special Bonds are being issued to three Oil Marketing Companies as compensation for under-recoveries in their domestic LPG and Kerosene (PDS) operations during the current financial year.

The first tranche of the Special Bonds is being issued at par to Indian Oil Corporation Limited (IOCL) including IBP for Rs 2,838 crore, Bharat Petroleum Corporation Limited (BPCL) for Rs 1,135 crore and Hindustan Petroleum Corporation Limited (HPCL) for Rs1,027 crore on October 16, 2006.

"The investment in the Special Bonds will not be reckoned as an eligible investment by banks and insurance companies for their statutory requirements. However, such investment by the Provident Funds, Gratuity Funds, and Superannuation Funds, in the Special Bonds will be treated as an eligible investment under the administrative order of Ministry of Finance",an official release said here.

The Special Bonds will be transferable and eligible for market ready forward transactions (Repo). The bonds, however, will not be an eligible underlying security for ready forward transactions (Repo and Reverse Repo) with the Reserve Bank of India, the release said.

UNI GS PV RN2034