The Finance Ministry has agreed to pay a record Rs 100,000 crore to state-run oil marketing companies towards diesel and cooking fuel subsidy in 2012-13 to help them avoid the impact of the proposed implementation of Export Parity Price (EPP) pricing formula.
The Finance Ministry wants the pricing model to be changed to EPP, but Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) are opposing the proposed change as the new model would bring their profitability down to nearly zero.
Ranbaxy might have cross the hurdle of allegations of supplying poor-quality drugs but the episode will hit the Ranbaxy as well as other Indian pharmaceutical firms' businesses in the future, market analysts believe.
Ranbaxy, which is now owned by Diiachi Sankyo of Japan, pleaded guilty to criminal charges of adopting poor manufacturing practices and supplying certain adulterated drugs produced at its two Indian facilities. The company hit a settlement by agreeing to pay $500 millon in civil damages and fines.
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