MUMBAI/NEW DELHI: India has approved 300 billion rupees ($3.4 billion) compensation to oil marketing companies for losses incurred in selling subsidised cooking gas, Information and Broadcasting Minister Ashwini Vaishnaw said on Friday.
The compensation, approved by Prime Minister Narendra Modi's cabinet, would be paid to state-run Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp in 12 tranches, according to a government statement.
It will allow state-run oil companies to continue crude procurement, debt servicing and sustaining capital expenditure, the statement said.
"As gas prices are impacted by geopolitics, the subsidy will insulate the country's middle-class families from any negative impact", Vaishnaw said at a briefing.
The government also allocated 120.6 billion rupees towards a scheme to provide subsidised cooking gas connections to women from nearly 100 million poor households. — Reuters
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