Government issues 6.90 per cent oil bonds, 2026
04 Feb 2009
The government has announced the issue of '6.90 per cent Oil Marketing Companies' Government of India Special Bonds, 2026' worth Rs21,942 crore. The special bonds are being issued to three public sector oil marketing companies as compensation towards estimated under-recoveries on account of sale of sensitive petroleum products during the current financial year.
The oil bonds were issued at par to the following oil marketing companies today: Indian Oil Corporation Ltd (Rs11,943.93 crore), Hindustan Petroleum Corporation Ltd (Rs4,681.36 crore) and Bharat Petroleum Corporation Ltd (Rs5,316.71 crore).
The investment in the special bonds by the banks and insurance companies will not be reckoned as an eligible investment in government securities for their statutory requirements, the government said in a statement.
However, such investment by the insurance companies will be eligible to be reckoned as investment under ''other approved securities'' category as defined under Insurance Regulatory and Development Authority (Investment) Regulations, 2000. Further, the investment by the provident funds, gratuity funds, superannuation funds, etc. in the special bonds will be treated as an eligible investment under the administrative order of the finance ministry, the release said.
The special bonds will be transferable and eligible for market ready forward transactions (repo).
