Oil marketing company IBP & Co. Limited has transferred the LPG business to its parent Indian Oil Corporation (IOC), thus reducing the subsidy burden carried out by the company to a large extent.
Sources in IBP told PTI that the LPG business of the company had been transferred in the beginning of the current financial year.
The government, recently, issued oil bonds to the tune of Rs 400 crore to IBP on account of subsidy on LPG and kerosene.
Sources said unless the government issued further oil bonds of the company, then IBP was all set to post losses for the first time in history.
Till December 2005, the company had posted accumulated losses to the tune of Rs 500 crore. With under-recoveries in MS and HSD increasing gradually, it would be difficult for IBP to stay in the black during the just concluded financial year 2005-06.
Even during 2004-05, IBP was set to post losses. However, it was averted as the government paid past dues of OCC to the company.