ONGC won?t accept bonds

ONGC has refused to accept oil bonds as payment for its crude oil sales to PSU refiners?IOC, BPC and HPC.

May 23, 2008 23:49 IST

ONGC has refused to accept oil bonds as payment for its crude oil sales to PSU refiners?IOC, BPC and HPC. Instead, the state-owned E&P major has offered to lend its Rs 17,000 crore cash surplus to bail out these cash-strapped oil PSUs. IOC chairman Sarthak Behuria and HPCL chairman Arun Balakrishnan have offered to pay their crude suppliers ONGC and OIL in oil bonds.

?We cannot allow a parallel currency as payment for crude oil sales. I will fight it tooth and nail. ONGC is a listed company? investors can sue us for such a move,? said ONGC CMD RS Sharma.

However, Sharma offered to help its sister PSUs by parking its surplus funds with them.

This article was first uploaded on May twenty-three, twenty eight, at forty-nine minutes past eleven in the night.