Financing standing working capital of Oil Marketing Companies (OMCs) by long term external borrowings

It has been decided to put in place an arrangement for financing the standing working capital requirements of Oil Marketing Companies (OMCs) by long-term foreign currency loans. The arrangement will be as follows:

(i)    OMCs will borrow USD 10 billion with a maturity of 5 years in a phased manner, with an initial tranche of USD 4 billion followed by two tranches of USD 3 billion each, all borrowing completed in a period of one year from now.

(ii)    OMCs will not be required to hedge their exposure.