Govt issues Special Bonds for Rs 4,971 cr to Oil Cos

New Delhi, Mar 29 (UNI) Government today announced the issue of fifth tranche of 8.4 per cent oil Marketing Companies' Government of India Special Bonds, 2026 for Rs 4,971 crore.

The Special Bonds are being issued to three Oil Marketing Companies as compensation for under-recoveries on domestic sales of sensitive petroleum products during the current fiscal year.

The fifth tranche of the Special Bonds is being issued at par to Indian Oil Corporation Ltd (IOCL) for Rs 2,956.19 crore, Bharat Petroleum Corporation Ltd (BPCL) for Rs 996.87 crore and Hindustan Petroleum Corporation Ltd (HPCL) for Rs 1,017.94 crore.

The Special Bonds will be transferable 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 Reserve Bank of India.

The investment in these Bonds by the banks will not be reckoned as an eligible investment in Government securities by banks and insurance companies 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, etc in the Special Bonds will be treated as an eligible investment under the administrative order of the Ministry of Finance.

UNI