Oil Firms To Pay Interim Dividend Of Rs 2,500 Crore

The finance ministry has changed tracks once again. Instead of the additional dividend for the last financial year, it has now asked public sector oil companies to pay interim dividends for the current year (2002-03).

The ministry has conveyed to the petroleum ministry that it would like to raise around Rs 2,500 crore in the current financial year through interim dividends from public sector oil companies.

Of this, Oil and Natural Gas Corporation (ONGC) has been asked to shell out around Rs 1,000 crore.

Earlier, the ministry had proposed to raise Rs 6,000 crore from the firms as additional dividend for 2001-02 to help the government bridge the fiscal deficit.

However, when the move was resisted by the oil companies, who expressed their inability to make such a provision in their investment plans, the finance ministry reduced its target for the additional dividend by 50 per cent.

This, too, was opposed by the oil companies, which said it would not be possible for them to make adjustments for the additional dividend in their accounts for the last year because the books had been closed.

However, the oil firms are learnt to have conceded the latest demand by the finance ministry, with ONGC, Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Gail India Ltd expected to declare interim dividends for 2002-03 later this month.