The three state-run oil companies have paid Rs 15,000 crore as subsidy to public sector oil marketing companies (OMCs) for the Apr-Jun 2013 quarter. Of the Rs 15,000 crore, Oil and Natural Gas Corporation (ONGC) paid around Rs 12,300 crore, Oil India Rs 2,000 crore, and GAIL Rs 700 crore. It may be recalled that of the total under-recovery incurred by state-run OMCs, 40 percent is shared by the gov
Tag: Cost
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Officials of CPT, COT to iron out differences
Cochin Port Trust (CPT) and BPCL Kochi Refinery may hold a meeting to iron out issues regarding sharing of cost for carrying out dredging at the Cochin Oil Terminal (COT). It is learnt that the union government decided to convene a meeting between both the organisation to settle the difference
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Vizhinjam port unable to use new wharf
Owing to structural shortcomings and insufficient infrastructure facilities, Vizhinjam port is unable to use a wharf, which was newly constructed at a cost of Rs 8.87 crore. A report by the Comptroller and Auditor General of India (CAG) shows facilities like compound wall, transit shed and storage facility were not available for the newly constructed wharf. Four years ago, the port depa
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BDI rises due to demand for ore from China
Media reports indicate that the increase in demand for iron ore from China, the largest producer of steel, raised the Baltic Dry Index (BDI). The index tracks freight charges or the cost of moving the major raw materials by sea and it is published daily by the London-based Baltic Exchange
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Rail projects in Karnataka get additional Rs 6 bn funds
In 2013-14, the central government would spend an additional Rs 300 crore on railway projects in Karnataka, while the state government would contribute an equivalent amount for these projects. Thus, a total of Rs 600 crore would be spent on rail projects in the state during the current financial year over and above what was budgeted. The Union Railway budget 2013-14 allocated Rs 900 crore for rail projects in the state. Including electrification and doubling of tracks, it would top Rs 1200 Rs 1
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Essar Ports to ask clients to pay in dollars
Essar Ports will gradually ask its port users to pay tariff in US dollar instead of rupee. This means, the company would receive tariff in dollars from customers and convert the same into rupees at the prevailing exchange rate. After Gujarat Pipavav shipyards, Essar Ports would be the second port operator to start moving away from rupees while charging tariff, reports
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Bottomline of oil firms set to rise
Media reports indicate that the recent hike in the price of natural gas by the government would boost the bottomline of oil and gas companies in the country. For example, the $8.4 an mBtu price approved by the CCEA, would raise the net profit of ONGC by another Rs 8,500 crore, while it would add another Rs 1,050 crore to the bottom line of Oil India (OIL), reports indicate
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State-run firms eye Brazilian field
State-run oil and gas companies in India plan to pool their resources to bid for the Libra field, located 180 km off the coast of Rio de Janeiro in the Santos basin, Brazil.
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Secondary steel firms take hit due to weakening rupee
The cost of imported raw material for secondary steel producers in the country rose owing to the recent sharp depreciation in the Indian currency. Secondary steel producers import steel scrap and coking coal, besides other things. The exchange rate of rupee depreciated up to Rs 60 per dollar thereby raising the imported raw material cost of companies. Some reports indicate that the secondary steel units conc
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CCEA clears proposal to hike gas price to $8.4 per unit
On the basis of the suggestions made by the Rangarajan committee, the Cabinet Committee on Economic Affairs (CCEA) decided to raise the price of domestic natural gas, from $4.2 to $8.4 a million British thermal unit (mBtu), from April 2014. Once the new price is adopted, it would be revised on a quarterly basis for a period of five years, reports indicate