With the rupee touching a 30-month low against the US dollar, state-owned Oil and Natural Gas Corp (ONGC) will get a windfall of over Rs 1,300 crore from the domestically produced natural gas, which is priced in dollar. The windfall is courtesy the Oil Ministry, which changed the pricing of domestically produced natural gas from rupee to the US dollar last year. In May last year, the ministry had decided that gas produced by ONGC and Oil India should be priced in US dollars when rates were revised to $3.818 per million British thermal units ($4.2 per mmBtu after including royalty) from Rs 3,200 per thousand cubic metres (equivalent to $1.79 per mmBtu). However, with rupee dropping below Rs 50 per dollar from less than Rs 45 three months back, fertiliser firms and power producers are having to shell out Rs 3.5 crore more every day.From 52 million cubic metres per day of gas production, ONGC will gain Rs 1,304 crore on an annualised basis at the higher exchange rate. The windfall that ONGC is getting is actually being borne by consumers who have to shell out more in electricity rates and fertiliser costs. This situation as well as a scenario where the rupee hardening hurts ONGC's revenue, could have been avoided if domestic gas was priced at the equivalent of$3.818 per mmBtu in rupees, as had been the past practice. Reliance Industries (RIL), the nation's second-biggest gas producer, stands to gain Rs 1,240 crore on production of 45 mmcmd of gas from its eastern offshore KG-D6 fields in a year due to weakening of the rupee. While KG-D6 gas could not have been priced in rupees, as the contract for the field explicitly provides for pricing of the fuel in US dollars, the additional burden on power and fertiliser firms could have been avoided if the proposal from RIL of having a fixed rupee-dollar ratio had been accepted.
| Company Name | CMP |
|---|---|
| ONGC | 244.35 |
| Oil India | 445.05 |
| Jindal Drilling&Inds | 745.70 |
| Hind Oil Exploration | 194.15 |
| Deep Industries | 614.05 |
| View more.. | |
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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