Fin Min cuts equity infusion in OMCs

India has slashed its equity infusion in state-owned fuel retailers to Rs 15,000 crore -- from earlier proposed Rs 30,000 crore -- for investments in energy transition projects, according to the finance ministry. Making in the announcement in a post on X, the ministry stated that a decision was made to limit the equity infusion into oil marketing companies (OMCs) such as IOC, BPCL, and HPCL, focusing on green energy and net-zero initiatives to a maximum of Rs 15,000 crore for the fiscal 2023-24 during a meeting of the Expenditure Finance Committee. No specific reasons for the adjustment were provided. The 2023-34 budget had initially earmarked Rs 30,000 crore for the purpose. Industry sources suggest that the reduction in equity infusion could be associated with the central government's emphasis on managing expenditures while aiming to restrict the fiscal deficit to 5.9% of the GDP in the current fiscal.