Thursday, September 8 2005 14:18 Hrs (IST) - World Time -

New Delhi: Finance Minister P Chidambaram today (Sept 8, 2005) indicated that the Government would not issue oil bonds worth over Rs 10,000-12,000 crore to petroleum companies before November, as the move required Parliamentary approval.

"We are working out (oil bonds). They will be issued after getting the approval of Parliament," Chidambaram told reporters on the sidelines of a micro finance function here.

Issue of oil bonds would require appropriation of required amount from the consolidated fund of India, which meant seeking approval of Parliament.

Withdrawal of such amounts could therefore only be through supplementary demands for grants and the next winter session of Parliament is expected to start only after middle of November, sources said.

The government announced on September six that bonds are likely to be issued to oil retailers: Indian Oil, Bharat Petroleum, Hindustan Petroleum and IBP to compensate them for not raising domestic cooking gas (LPG) and Kerosene prices in line with the rise in global crude prices.

Of the Rs 19,634 crore revenue loss on LPG and Kerosene, Rs 3,600 crore would come from direct budgetary subsidy. For the remaining amount, oil bonds were expected to be issued.