But if upstream players must bear subsidy, it should be shared by private oil producers as well, and not be limited to state-run ONGC or Oil India, they said. ONGC has traditionally realised far less than the international rates when oil prices were high due to subsidy burden. It plans to spend Rs 32,000 crore in 2018-19.ONGC, which had been debt-free for decades, had to borrow about Rs 25,000 crore for HPCL acquisition earlier this year. “Any more borrowing to support subsidysharing programme could deteriorate our debt-equity ratio and give rise to a rating downgrade risk,” an executive said. ONGC was once the country’s most profitable firm.

Source: Economic Times May 25, 2018 02:03 UTC