New Delhi: The Union Ministry of Finance has asked domestic oil companies to pay additional dividends on the profits earned by them.

Facing problems to manage the exchequer, the Ministry has asked ONGC, Indian Oil, Bharat Petroleum, Hindustan Petroleum, Engineers India Limited, Oil India, GAIL Limited and Balmer Lawri to pay extra share of the profit earned.

In order to form a consensus on the issue, the Finance Ministry has allowed oil companies to form a committee and discuss about the extra dividends to be paid to the government in the current fiscal year.

Moreover, the companies have also been asked to pass the proposal in their Board of Directors.

Presently, as per the set guidelines on PSU, oil companies have to pay minimum 30 percent dividend on the total profit earned.

According to one of the senior officials in Indian Oil, the directives issued by the Ministry will be burden on marketing and mining companies. Oil companies are already supplying Diesel, LPG gas and Kerosene at a much lower rate. By the end of the year, the loss incurred by oil companies may reach up to Rs 1,30,000 crores.

The Finance Ministry directive has come two days after the Union Ministry of Petroleum demanded for Rs 46,000 crore to overcome the losses. The Finance Ministry has decided to pay only Rs 15,000 crore.

JPN/Bureau