New Delhi State-owned oil firms have seen their losses on diesel sales widen to over Rs6 per litre, even as a ministerial panel meeting on raising prices has not yet been scheduled, reports PTI.
“The Empowered Group of Ministers (EGoM) headed by finance minister Pranab Mukherjee was tentatively scheduled to meet at 1330 hours on 22nd December. But there is no communication so far on the meeting from the EGoM head (Mukherjee’s office),” an oil ministry official said.
A Rs2 per litre hike in diesel prices was on the agenda of the EGoM meet, with the objective of narrowing the difference between the domestic retail price of the transport fuel and the imported cost.
“The under-recovery or the revenue oil marketing companies lose on selling diesel, today stands at Rs6.08 per litre,” the official said.
Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation currently lose about Rs105 crore per day in revenues on selling diesel below the imported cost.
“International crude oil (raw material for diesel) has climbed to $90 per barrel, widening the gap between domestic retail prices and their imported cost,” he said.
Besides diesel, the oil firms currently lose Rs17.72 per litre on PDS kerosene sales and Rs272.19 per 14.2-kg LPG cylinder.
Even after last week's steep Rs2.94-Rs2.96 a litre hike, the retail price of petrol is Rs1.2-Rs1.25 a litre short of the imported cost.
The government had in June this year freed petrol prices, but state firms, which control 98% of the retail market, continue to informally consult the oil ministry before revising prices.
Also, the government had decided to make diesel price market-determined in stages. “Freeing diesel prices at current crude prices is simply not possible,” he said.
The three firms are projected to end the fiscal with a Rs68,361 crore revenue loss on account of the sale of diesel, domestic LPG and kerosene below cost.
“They are losing Rs215 crore per day on the sale of the three products. Also there are marginal under-recoveries on petrol,” the official said.
The official said the international price of crude oil—the raw material for making petrol and diesel—was hovering around $72-$74 per barrel in June when the government freed petrol prices. However, the price of petrol has risen five times since then, even as diesel rates remained unchanged.
Hindusthan National Glass & Industries Ltd (HNG) said it has signed deals worth over Rs250 crore with international companies which include Emhart Glass (Switzerland), Heye Glass (Germany), Pennekemp (Germany), Horn Glass (Germany) and Zippe (Germany).
These deals are part of HNG’s strategy to follow a very aggressive growth plan which would act as a catalyst in doubling its existing capacity in the next 30-35 months through greenfield and brownfield expansions entailing investment of Rs250 crore.
Emhart Glass, supplier of equipment, controls and parts to the glass container industry will be providing HNG with the latest glass bottle forming machines. It will also be supplying BIS machines to be installed for the first time in ASIA.
For the greenfield project in Naidupeta, HNG will put up the largest batch house to be supplied from ZIPPE and the furnace for container glass to be provided by HORN Glass.
On Monday, HNG gained 1.02% to Rs263 on the Bombay Stock Exchange, while the benchmark Sensex closed 0.12% up at 19,888.88 points.
Tata Group firm Voltas Ltd said its board of directors has approved the formation of a joint venture with Saudi Arabia’s Olayan Financing Company to execute electro-mechanical projects in the country.
“The joint venture agreement incorporating the terms and conditions JVC has been executed between Voltas Ltd and Olayan Financing Company on 18 December 2010,” Voltas said in a filing to the Bombay Stock Exchange (BSE).
The company said both the firms will hold equal stake in the joint venture, which is expected to be operational from April 2011.
“Through this joint venture with Olayan Financing Company, Voltas seeks to leverage its vast experience, track record and expertise for MEP (Mechanical, Electrical and Plumbing) projects in Kingdom of Saudi Arabia (KSA),” the firm said.
Olayan Group comprises over 50 companies and affiliated businesses. It is engaged in products distribution, manufacturing and investments amongst others.
On Monday, Voltas declined 2.05% to Rs215 on the BSE, while the benchmark Sensex closed 0.12% up at 19,888.88 points.