Oil exploration major ONGC saw its shares drop sharply once again in trade with the stock dropping by almost 3 per cent in trade as Brent Crude continued to slide.
Shares of the company were last trading at Rs 340 on the National Stock Exchange. Drop in Brent Crude tends to affect the profitability of ONGC which has seen its share price sink gradually along with a drop in crude prices.
Oil Minister Dharmendra Pradhan had recently recently said that the government was working on the subsidy sharing formula.
For the remainder of the fiscal, another Rs 21,000-22,000 crore of under-recoveries are estimated which can easily be met by government subsidy from budget and sparing ONGC, they said.
PTI reports recently said that sources in the oil ministry is of the view that unless sufficient funds are available for increased oil recovery and enhanced oil recovery schemes from the ageing oil fields, the country may notionally lose more than 70 million tonnes of indigenous crude oil production during next 10 years.
This may increase the import bill by Rs 3,33,000 crore. However, if this crude is produced indigenously, it will cost only Rs 112,000 crore resulting in a substantial saving of Rs 2,21,000 crore.