Following the recent surge in fuel prices and the persistent decline in the Indian Rupee, it has been decided to put in place an arrangement for financing the standing working capital requirements of Oil Marketing Companies (OMCs) by long-term foreign currency loans, noted a latest press release from the Ministry of Finance. The OMCs will borrow USD 10 billion with a maturity of 5 years in a phased manner, with an initial tranche of USD 4 billion followed by two tranches of USD 3 billion each, all borrowing completed in a period of one year from now. OMCs will not be required to hedge their exposure.
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