State-run Indian Oil Corporation (IOC) has reportedly sought subsidy payment of Rs 13,600 crore from the government for the first half of current financial year before the company declares the third quarter results. The company also wants the government to reimburse Rs 6,000 crore interest burden on its rapidly increasing borrowings along with compensation on loss of petrol sales to prevent it from reporting heavy losses in the coming quarter.
The company is expected to lose around Rs 21,000-22,000 crore in revenue for Q3FY13. The under-recoveries for the company along with other two retailers, Bharat Petroleum and Hindustan Petroleum, are expected to be Rs 41,000 crore. The company's current borrowings stands at Rs 98,100 crore and is nearing it's threshold limit of around Rs 1,10,000 crore. Its borrowing stood at Rs 75,000 crore at the end of 2011-12.
Indian Oil Corporation is an integrated oil refining and marketing company. The company, along with its subsidiary, controls ten refineries across India, which have a total installed capacity of 65.7 million tonnes per annum (mtpa); these represent around 35 per cent of the country's total installed capacity.