NEW DELHI: The Government on Wednesday said oil marketing companies would borrow 10 billion dollars with a maturity of five years in a phased manner to check the steep rise in fuel prices in past few weeks.
The Finance Ministry said this step was an arrangement for financing the standing working capital requirements of the oil marketing companies by long-term foreign currency loans.
Of the 10 billion dollars loan, the initial tranche was 4 billion dollars followed by two tranches of 3 billion dollars each.
All borrowings would be completed within one year from now. The oil companies would not be required to hedge their exposure.
The decision came in wake of recent surge in fuel prices and constant decline in the rupee in past few weeks.