IOC on the verge of payment default

IOC on the verge of payment default
Press Trust of India

NEW DELHI, SEPT 21: Hit hard by spiralling global oil prices, Indian Oil Corporation (IOC) has sent an SOS to government that it has nearly exhausted all its borrowing limits for importing crude and was on the verge of default.

Stating that Corporation's dues with the Oil Coordination Committee had reached a staggering Rs 6,000 crore, the officials said total borrowings of the Fortune 500 company had reached a whopping Rs 18,800 crore. "We have come to a situation where we are being forced to buy dollars on rupee payment," they said.

Asked about the government's response, they said that Petroleum Ministry had suggested to increase the borrowing limits, but added that the issue of payment liability of the corporation remained unanswered in view of delays in clearance of dues.

IOC chief M A Pathan had earlier said that the oil import bill would increase to over $ 17 billion during the current fiscal as against the outgo of $ 10.8 billion last fiscal. Another $ two billion imports were accounted for by the private players.