Question : FINANCIAL CONDITION OF HPCL

(a) whether the net profit of Hindustan Petroleum Corporation Limited (HPCL) and other public sector oil companies has been decreased during the second quarter ending on September, 2000;

(b) if so, the details thereof;

(c) the steps proposed to be taken to review the working of all these oil public sector undertakings;

(d) whether HPCL has a high debt burden on it;

(e) if so, the details thereof along with the reasons therefor; and

(f) the present investment of Hindustan Petroleum Corporation Limited in other undertakings?

MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SANTOSH KUMAR GANGWAR)

(a) & (b) A statement indicating the net profits earned by Oil sector`s public sector undertakings (PSUs) during the second quarter vis-à-vis the 1st quarter of this year is enclosed. The profit after tax in the case of HPCL was Rs. 200.63 crores and Rs. 222.54 crores during the first and second quarter of the current financial year respectively. Some Oil PSUs namely, Oil India Ltd., Gas Authority of India Ltd., and Balmer Lawrie have reported decline in profits during the second quarter as compared to first quarter of this year.

(c) The working and performance of oil sector`s PSUs are reviewed regularly in various fora. These, interalia, include quarterly progress review meetings, annual plan discussions, memorandum of understanding discussions etc. The process of review and monitoring is a continuous one.

(d) & (e) HPCL has very low debt-equity ratio. However, short-term loans are high due to increase in working capital requirement, non-receipt of dues from oil pool account etc.

(f) HPCL has invested approximately Rs. 496 crores in Joint-Venture projects such as Mangalore Refinery and Petrochemicals Ltd, Petronet India Ltd, Hindustan Oman petroleum Company Ltd, etc.

STATEMENT REFERRED TO IN REPLY TO PART (a) & (b) OF THE LOK SABHA UNSTARRED QUESTION NO. 4111 DATED 14-12-2000 REGARDING FINANCIAL CONDITION OF HPCL

Profit (+)/Loss(-) in Rs. crores

S.No	Name of Public Sector Undertakings	Profit after tax during
April-June 2000	July-Sept. 2000
1	Indian Oil Corporation Ltd.	509.58	978.00
2	Bharat Petroleum Corporation Ltd.	188.00	359.00
3	Hindustan Petroleum Corporation Ltd.	200.63	222.54
4	Oil & Natural Gas Corporation Ltd.	937.96	1595.56
5	Oil India Ltd.	138.36	67.44
6	Gas Authority of India Ltd.	279.41	246.50
7	Kochin Refineries Ltd.	8.00	37.62
8	Bongaigaon Refinery & Petrochemicals Ltd.	-25.66	3.78
9	Engineers India Ltd.	26.95	44.15
10	Chennai Petroleum Corporation Ltd.	1.95	22.68
11	IBP Co. Ltd.	7.49	14.10
12	Balmer Lawrie & Co. Ltd.	3.11	1.85
13	Biecco Lawrie Ltd.	-1.79	-2.77