Panel to monitor oil companies' health
PM Manmohan Singh set up a committee headed by former Cabinet secretary B K Chaturvedi to examine the financial position of oil companies.
By TNN |
NEW DELHI: Within hours of the Union Cabinet raising fuel prices and slashing Customs duties, Prime Minister Manmohan Singh on Wednesday set up a committee headed by former Cabinet secretary B K Chaturvedi to examine the financial position of oil companies.
Prime minister���s economic advisory council member Saumitra Chaudhuri and chief economic advisor in the finance ministry Arvind Virmani will also be part of the panel , an official release said.
The committee would study the impact of increase in oil prices between 2004-05 and 2008 on the financial position of oil producers, refiners and marketing companies (OMCs). It would also analyse the cash flows and profitability of these companies to get a clear picture of the changes in their operating positions , particularly the impact on access to credit and cash availability for their operations.
Besides, it would review the concept of under-recoveries and examine the reported and the real deficit faced by OMCs as a result of price checks imposed on them.
The panel would estimate the financial needs of refiners and OMCs to continue their normal business activities and the energy needs of the economy, and also the possible sources of funds to meet their requirements.
Finally, it would examine the available options for burden sharing by all stakeholders, including exploration companies, refiners, OMCs and standalone refiners.
Prime minister���s economic advisory council member Saumitra Chaudhuri and chief economic advisor in the finance ministry Arvind Virmani will also be part of the panel , an official release said.
The committee would study the impact of increase in oil prices between 2004-05 and 2008 on the financial position of oil producers, refiners and marketing companies (OMCs). It would also analyse the cash flows and profitability of these companies to get a clear picture of the changes in their operating positions , particularly the impact on access to credit and cash availability for their operations.
Besides, it would review the concept of under-recoveries and examine the reported and the real deficit faced by OMCs as a result of price checks imposed on them.
The panel would estimate the financial needs of refiners and OMCs to continue their normal business activities and the energy needs of the economy, and also the possible sources of funds to meet their requirements.
Finally, it would examine the available options for burden sharing by all stakeholders, including exploration companies, refiners, OMCs and standalone refiners.
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