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:

1.    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.

2.    OMCs will not be required to hedge their exposure.