Oil Bonds: During UPA (2004-14) period, when the prices of oil | ECONOMY by VIVEK SINGH

Oil Bonds:
During UPA (2004-14) period, when the prices of oil increased, Govt. gave subsidies to the people of India by reducing the prices of oil. So, let us say if the Oil Marketing Companies (OMCs) like IOCL/BPCL/HPCL were selling the Petrol at Rs. 90 (at that time), Govt. asked OMCs to sell the petrol at Rs. 80 and Govt would pay Rs. 10/liter to OMCs. But Govt. actually did not pay in cash, rather Govt. issued "Oil Bonds" to OMCs of the total value of subsidy, which meant Govt. would not pay at that time but at a later date (whatever maturity specified on the bond). These "Oil Bonds" are basically a kind of debt paper issued by GoI which are now maturing. So, the present Govt. (NDA) has to pay principal back and ofcourse it is already paying interest on these bonds since 2014 onwards. So, there is a burden on the present Govt. and hence the Govt. is not reducing the excise duty on Petrol/diesel even if the prices are high as these excise duties are being used to pay for the interest/principal on oil bonds issued during UPA. (This is what our FM is saying).

Gati Shakti (National Infrastructure Master Plan):
The economic hubs of the country will be connected through different modes (multi-modal) of connectivity like roads, railways, ports and airports. So Gati Shakti will be built on the already going NIP project which will lead to integrated and holistic development of the economy. Details regarding this project will be clear once its officially launched. This project was discussed by our PM in his independence day speech.

If on any particular date, there is no post on this channel then assume that there is nothing relevant for economy on that day.