Indian authorities might make an fairness funding of Rs300bn ($3.66bn) within the nation’s three oil advertising firms (OMCs), reported Economic Times, citing sources.

The capital infusion might be after the OMCs — Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) — submit their capital plans to the federal government.

According to a authorities official, “The Rs300bn that was set aside as capital support for the OMCs in this budget would go to them in the form of equity infusion. But this will be after they present the finance ministry with a set of capital investment projects. Primarily, the projects will be related to emission reduction, refinery upgradation etc.”

The administration intends to complete the method this fiscal after getting ready the define of the plan.

While the mode for this fairness infusion remains to be being finalised and the official said that OMCs is not going to obtain capital help as a part of a subsidy for promoting petrol and diesel under value.

“Right now the OMCs need a financial infusion. But the government is reluctant to give them subsidies,” the official added.

Meanwhile, the OMCs are involved that the proposed fairness infusion might influence their share costs, market valuation, and market notion.

“We are aware of the government’s plan to increase equity in our company, but we have suggested alternatives,” a high official from an OMC mentioned.

The OMCs have requested a monetary grant or mortgage from the federal government, he continued, or they want to obtain the funding within the proportion of capital expenditures they plan for FY24.

In a separate growth, Oil India Limited (OIL) revealed plans to commence exploration in Nagaland as quickly because the local weather permits.

The government-backed oil firm has round 3000km² of exploration acreage in Nagaland.