Government Withdraws Rs 30,000 Crore Equity Infusion Plan for Fuel Retailers After Record Profits

The government has cancelled its Rs 30,000 crore equity infusion plan for state-owned fuel retailers, IOC, BPCL, and HPCL, after they reported record profits for FY24. Initially set to support their energy transition plans, the financial aid was reduced and eventually scrapped in the latest budget.

The government has scrapped the Rs 30,000 crore equity infusion it had planned for state-owned fuel retailers, following their record profits in the fiscal year ending March 31, as stated in the Budget presented by Finance Minister Nirmala Sitharaman on Tuesday.

In her February 1 budget speech last year, Sitharaman had announced a Rs 30,000 crore equity infusion for Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) to support their energy transition plans for the 2023-24 fiscal year.

Additionally, she proposed Rs 5,000 crore for purchasing crude oil to fill strategic underground storages in Karnataka and Andhra Pradesh to protect against supply disruptions.

(With inputs from agencies.)