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fiscal year by reimbursing a whopping Rs 42,200 crore in the March quarter," the report noted.
However, the report noted that budgeted Rs 57,300 crore for fuel subsidies for the next fiscal is sufficient to fully compensate OMCs for the current fiscal's shortfall.
But even though such adjustments have been made by the government in the past, the situation is more complicated this year with elections that may result in a change in government, which could adopt different policies, it noted.
During the first three quarters, the OMCs have reported net under-recoveries of Rs 1,00,600 crore. After accounting for Rs 35,800 crore of reimbursements promised by government and the upstream companies' share of Rs 48,000 crore, OMCs still have a net under-recoveries of Rs 16,800 crore.
"Our base case assumes full reimbursement as we continue to expect government to fully reimburse the OMCs, given their strategic importance to the energy distribution network.