Indian Oil Corporation is losing Rs297 crore per day on selling diesel, domestic LPG and kerosene at government-controlled rates
State-owned Indian Oil Corporation (IOC) is losing Rs297 crore per day on selling diesel, domestic LPG and kerosene at government-controlled rates, a company official said.
"We are losing Rs18.11 per litre on diesel, Rs28.33 a litre on kerosene and Rs315.86 per 14.2-kg domestic LPG cylinder," he said. IOC loses Rs196 crore everyday on selling diesel below its imported cost, Rs53 crore on kerosene and Rs48 crore on domestic LPG.
Diesel prices were last revised in June last year when crude oil was $71-72 per barrel. It is trading at $110 a barrel now. Domestic LPG and kerosene rates too were revised last in June 2010.
The government has not allowed oil companies to raise fuel prices in line with imported cost to keep inflation under check.
"Retail selling price of diesel in Delhi should have been Rs55.86 a litre as against Rs37.75 per litre currently," the official said.
IOC along with public sector firms Hindustan Petroleum and Bharat Petroleum are projected to lose Rs1,77,562 crore in revenues on selling diesel, domestic LPG and kerosene below their imported cost in 2011-12 fiscal.
The revenue loss, termed as under-recovery by oil firms, will be the highest-ever, even more than what they lost in 2008-09 when crude oil touched an all-time high of $147 per barrel.
In addition, they lose about Rs4.50 per litre on petrol, whose rates have not moved in tandem with the imported cost despite its pricing being freed from the government control in June last year.
"Losses on petrol are not included in the under-recovery figures for 2011-12 as it is a decontrolled commodity," the official said.
The basket of crude oil India buys had averaged $83.57 per barrel in 2008-09 and calculations for the next fiscal have been done at the prevailing rates of around $110 a barrel.
"The average price of Indian basket of crude oil last fiscal was $85.09 per barrel, higher than the 2008-09 average when the government had cut customs and excise duty on crude oil and products to check the impact of rising international rates on domestic markets," the official said.
Finance Minister Pranab Mukherjee has not agreed to cut customs and excise duty on crude and product this time to protect his projected fiscal deficit.
"The situation in the current 2011-12 fiscal will be worse, the three PSU oil marketing companies are losing Rs540 crore per day on diesel, domestic LPG and kerosene sales," the official said.
On Thursday, IOC was trading 0.60% lower at Rs331.15 in the afternoon trade on the Bombay Stock Exchange.
Tata Power has started “My Mumbai, Green Mumbai” campaign wherein it has partnered with consumer brands to offer energy-efficient products at discounts under its demand side management efforts which would help consumers save on costs by up to 50%
Tata Power Company (TPC) has launched a campaign titled "My Mumbai, Green Mumbai" wherein it has partnered with leading consumer brands to offer energy- efficient products at large discounts under its demand side management (DSM) efforts which would help consumers save on costs by up to 50%.
TPC has partnered with manufacturers of energy-efficient appliances such as Havell's India for ceiling fans, OSRAM, a Siemens Company for T5 tube lights and Carrier India for air-conditioners (ACs), a press release said.
"With the launch of this initiative we are confident that our efforts will not only benefit our customers in terms of significant reduction in their monthly bills but will also enable them to make Mumbai a greener city," the company's executive director (operations), S Padmanabhan, said.
Interestingly, the company's rival Reliance Infrastructure (RInfra) had last month launched a similar campaign titled "Change for Mumbai" to distribute energy-efficient electrical appliances and gadgets to its consumers at discounted rates.
The release said that the energy-efficient appliances would help residential and industrial consumers save energy and cost by around 30-50%.
On Thursday, Tata Power was trading 0.23% higher at Rs1,329.10 in the afternoon trade on the Bombay Stock Exchange.
Tata Motors is “at a very high stage” in finalising a production site for its small car Nano at an overseas location, which could be either in Latin America, South East Asia or Africa
Tata Motors is "at a very high stage" in finalising a production site for its small car Nano at an overseas location, which could be either in Latin America, South East Asia or Africa.
A senior Tata group official said that the automobile major was exploring various options at different places and looking at uninterrupted supply chain for the components.
"The work is at a very high stage," Tata Industries managing director Kishor Chaukar told PTI when asked about a time-line to produce Nano in any of the overseas locations. Tata Industries is one of the investment arms of the Tata Group.
He said Tata Motors is looking at various regions such as Latin America, South East Asia and Africa. "They are looking at any of these possibilities."
While declining to specify details, Mr Chaukar said: "They (Tata Motors) are looking at the best options in terms of country locations or a geographic location."
Apart from considering land building facilities availability, Tata Motors will look at supply chain availability and at the accessibilities of markets, he added.
"...most importantly they will also be looking at the supply chain... because component usage in a single automobile runs into thousands and if you go in a large production, supply of these components of desired quality has to be highly reliable," Mr Chaukar said.
Nano, touted as the world's cheapest car, is now produced only at Sanand in Gujarat for the Indian market.
In 2009, Tata Motors unveiled the European version of Nano-Nano Europa-at the 79th Geneva Motor Show.
The company was expected to launch the car in Europe by 2011. The version in Europe is said to have airbags, central locking and would be Euro V emission norms compliant.
Although Tata Motors did not reveal any price tag for the Nano Europa, British media had predicted a price of over $6,000. The Indian edition of the car hit the roads in 2009 for about $2,500.
Tata Sons chairman Ratan Tata had said that the European version of the Nano would come with airbags and other high-end features, "but it will still be a low-cost car".
On Thursday, Tata Motors was trading 0.93% lower at Rs1,239.65 in the afternoon trade on the Bombay Stock Exchange.