GOI issues special bonds to Oil marketing companies

Mumbai, Feb 13 (UNI) The Government of India (GOI) has announced the issue of '8.20 per cent Oil Marketing Companies GOI Special Bonds, 2024' for Rs 5,000 crore (nominal) to three oil marketing companies as compensation for under-recoveries in their domestic LPG and kerosene (PDS) operations during the current financial year.

''The forth tranche of the Special Bonds has been issued at par to Indian Oil Corporation (IOCL) including IBP for Rs 2953.02 crore, Bharat Petroleum Corporation Limited (BPCL) for Rs 1040.03 crore and Hindustan Petroleum Corporation Limited (HPCL) for Rs 1006.95 crore yesterday,'' RBI manager P V Sadanandan in a release today said.

Though investment in these Special Bonds by banks and insurance companies will not be reckoned as an eligible investment in government securities, such investments will qualify to be reckoned as investment under 'Other Approved Securities' category, a RBI release said.

Furthermore, investment by Provident Funds, Gratuity Funds, Superannuation Funds etc in these bonds will be treated as an eligible investment under the administrative order of the Ministry of Finance and they are also tranferable and eligible for market ready forward transactions (Repo).

The bonds, however will not be eligible underlying security for ready forward transactions (Repo/Reverse Repo) with the RBI, the release added.

UNI