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India to issue bonds to oil marketing companies

India may issue oil bonds to state-owned oil companies IOC, BPCL and HPCL to compensate them for selling petrol, diesel, kerosene and cooking gas below costs in the first half of 2009-10, a senior official said. The three government-owned companies lost revenues worth more than Rs10,000 crore (US$2.1 billion) in the first half of 2009-10. According to the official, the first installment of oil bonds will be released in December that will take care of oil companies’ revenue losses in the April-September 2009 period. The oil bonds will be released in the January-March period. (November 5, 2009)