India approves $3.4-B payout to state-run refiners for cooking gas losses
India has approved 300 B rupees ($3.4 B) compensation to oil marketing companies for losses incurred in selling subsidized cooking gas, Information and Broadcasting Minister Ashwini Vaishnaw said on Friday.
The compensation, approved by Prime Minister Narendra Modi's cabinet, would be paid to state-run Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. in 12 tranches, according to a government statement.
It will allow state-run oil companies to continue crude procurement, debt servicing and sustaining capital expenditure, the statement said.
"As gas prices are impacted by geopolitics, the subsidy will insulate the country's middle-class families from any negative impact," Vaishnaw said at a briefing.
The government also allocated 120.6 B rupees towards a scheme to provide subsidized cooking gas connections to women from nearly 100 MM poor households.
($1 = 87.6880 Indian rupees)
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