MUMBAI, SEPT 22: In view of its shrinking bottomline due to spiralling global oil prices, Hindustan Petroleum Corporation Ltd (HPCL) is planning to raise funds by floating bonds of about Rs 300 crore and increasing borrowing limit by Rs 1,000 crore to Rs 2,500 crore.‘‘We have utilised our existing limit of Rs 1,500 crore and have approached a consortium of banks led by SBI for an extension and are also planning to float bonds again, details of which are to be worked out,’’ HPCL director (finance) S D Gupta said here today.HPCL had floated bonds worth Rs 500 crore in the last quarter, he said. Another public sector oil company Bharat Petroleum Corp Ltd (BPCL) too is feeling the pinch and would resort to extra borrowing from the market in few months, industry sources said.‘‘We have not utilised our limit of Rs 500 crore, but I do not rule out an increase in our market borrowings up to Rs 500 crore before the end of the current financial year,’’ a top BPCL official said.The Union government owes the oil companies huge sums for selling products at subsidised prices, which have stretched their working capital requirements. ‘‘They are thus left with no alternative but to resort to short-term ad hoc borrowings from banks at higher interest rates of 12-15 per cent, which ultimately result into squeezed margins,’’ analysts said. ‘‘The refineries too are running at thin margins, thanks to increased international oil prices and the higher rate of interests by the banks,’’ an HPCL official said.HPCL’s working capital borrowings have reached Rs 3,000 crore and its oil pool dues stand at Rs 2,000 crore while that of BPCL is over Rs 1,000 crore, he added.Meanwhile, Indian Oil Corporation having exhausted all its borrowing limits for importing crude oil had sent an SOS to the government yesterday. It had informed the Centre that ‘‘our borrowing limits as a canalising agent for crude import in the country are nearly exhausted. if our dues are not cleared immediately we might face a situation of default.’’ IOC’s dues with the OCC had reached Rs 6,000 crore, while borrowings had touched Rs 18,800 crore.IOC chief M A Pathan had earlier said that the oil import bill would increase to over $ 17 billion during the current fiscal as against the outgo of $ 10.8 billion last fiscal. Another $ two billion imports were accounted for by the private players.
