Southern States - Andhra Pradesh

`ONGC gearing up to face global competition'

By Our Staff Reporter

Rajahmundry May 6. Jauhari Lal, Director (Human Resources) Oil and Natural Gas Corporation (ONGC), on Monday observed that after dismantling of the APM (administered price mechanism), a new scenario was emerging but a market-driven price structure was yet to take place.

At present the ONGC was not getting international price for its products. The petroleum sector would also take some time to take shape, he added.

Unlike in the past, the ONGC had to compete at the international level for which the entire administration was being geared up.

The process of restructuring, as per the recommendation of the Mckhenji committee, was also going on. The focus would be on fixing accountability, responsibility and delegation of power to achieve the set goals, Dr. Jauhari Lal said. As part of the restructuring, the human resources wing was being streamlined and Rs.800 crore would be spent in the coming two to three years to improve the IT wing.

This was necessary to face competition at the international level, Jauhari Lal said.

The Director had also referred to the demand of locals for upgradation of Rajahmundry office and said `the Asset Manager of KG Project in Rajahmundry now enjoyed more powers than the Regional Director, ONGC, at Chennai.

So the demand of locals had also been met'. He said that the Government of India had been spending Rs. 80,000 crores on import of oil and only about 30 per cent of requirements could be met with indigenous production.

Things for the ONGC were however looking up and it had made a profit of Rs.5,600 crores last year.

He was also happy at the way things were going on in KG Project where the ONGC had invested Rs.4,000 crores. The ONGC had so far contributed Rs.550 crores to the AP Government in the form of royalty and sales tax and this year about Rs.115 crores would be given.

Responding to questions on the delay in releasing employees under the VRS, Dr. Jauhari Lal said that IOC had given an attractive VRS package to its employees under the VRS.

The ONGC proposed similar package for its employees and the Board had also approved it. It had to be cleared by the Government. He had not agreed with the view that the VRS would result in ONGC losing the `cream' of its employees.

There were about 2000 applications for the VRS and most of them had joined the ONGC at the lower level but had reached executive levels because of the promotion policy of the ONGC. So there was no question of losing the `cream'.

He said the target of VRS in the ONGC was 5000 which would leave the ONGC with a staff strength of 34,000. In course of time it would be further reduced to 30,000, he said. Recruitment had never been stopped in the ONGC, he said answering another question.

He said that there would be increased activity in the offshore drilling not only by the ONGC but by the other players too. Under the NELP (new exploration licensing policy) the ONGC had taken up three offshore blocks.

The ONGC would also participate in the third round of bidding under NELP which was on the anvil.

Earlier, Dr. Jauhari Lal, along with the Asset Manager of KG Project, C. Lal, visited some areas where the ONGC had been carrying on its activities.

During his tour in the districts of East Godavari and West Godavari, Dr. Jauhari Lal inaugurated a community hall at Lingala, an eye camp and another community hall in Bavayapalem and distributed medicines.

He said that the ONGC would also contribute to the development of areas where it had been carrying out its activities.

After review, Dr. Lal congratulated the KG Project Asset Manager, C. Lal, and Basin Manager, S.S.Yelamarthy, for the all-round performance of the project in 2001-02.

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