IOC Likely To Consider Liquidating Bonds, Cross-Holdings

Indian Oil Corporation has been financially restrained due to under-recoveries. The borrowing has increased to Rs 36,000 crore for financial year 2007-08. If the situation continues, IOC could consider liquidating its oil bonds and cross-holdings in other companies. IOC''s under-recoveries have been of Rs 43,000 crore for the financial year 2007-08. Total under-recoveries of all public sector oil marketing companies has been to the tune of Rs 77,000 crore. For 2007-08, IOC has sold 58.3 million tonnes of petroleum products, reporting an 8.7 per cent growth in volumes as compared to the previous year. The market share has increased by 1.1 per cent to reach 48.9 per cent and exports during the year touched 3.3 million tonnes at growth of 8.5 per cent.