Date:05/06/2008 URL: http://www.thehindu.com/2008/06/05/stories/2008060560511200.htm

National

Committee to study financial position of oil companies

Special Correspondent

NEW DELHI: Prime Minister Manmohan Singh on Wednesday constituted a committee to examine the financial position of oil companies, including the upstream exploration companies, refiners and oil marketing companies (OMCs).

Headed by Planning Commission Member and the former Cabinet Secretary, B.K. Chaturvedi, the three-member committee will study the impact of increase in oil prices between 2004-05 and 2008 on their financial position.

The committee will analyse the cash flows and the profitability of all the three groups of companies to get a clear picture of the changes taking place in their operating positions.

The panel will revisit the concept of “under recoveries” and examine the reported deficit and the real deficit faced by the OMCs as a result of price constraints imposed on them.