A K SAXENA 3 OCT 2017
ONGC ,though a Mahanavratna , is seething with huge ineffeciencies for last several decades. This org was created as an autonomous body – a departmental undertaking – which was subsequently converted into a PSU. Main objective of this body was to work for self suffeciency in crude oil production & they were given exploration acreages on nomination basis for almost 50 years & acted as a state monopoly till introduction of new exploration licensing policy in late 90’s for allotment of exploration blocks on competitive basis. Still it continues as a dominant player. As they deal with black gold , their financial performance is bound to be very good notwithstanding their huge ineffeciencies. The first evidence of ineffecincy is the fact that country continues to import 80% of crude oil from abroad which continues to compromise our energy security & soverigenty. Appeasement policy of previous governments was the result of not only vote bank politics but also our dependency on Middle east for crude oil & petroleum products . Political consequences of failure of our domestic oil explorer & producer have never been assessed properly till now by any agency / governments. Secondly even in the area of production effeciency , yield of ONGC in areas like Bombay High has varied from 25 to 30% as against global norm of 50% . It means we are extracting less oil& gas leaving almost 75% in the oil / gas wells as irrecoverable oil . There is suffecient oil & gas in india which is waiting to be discovered & produced . This is a definite reality though i can not quote authority for this here. Only time will tell in not very far future.
In this backdrop it is a good decision to induct Samvit Patra as a non functional director on board of ONGC , notwithstanding minor or major deviations from existing govt policy , if at all it is there to enable a nationalist govt to gain insight into functioning of this complex organisations. In my view politicians are clueless in mega affairs of potroleum sector & they remain happy with asserting their authority & influence in micro issues covering not even 10% of oil sector finances . Politicians of india must understand mega issues & for this induction of Samvid Patra in ONGC board is a good decision , provided he takes active interest in oil economics & politics of country & world.
As regards shifting of board from Delhi to Dehradun , it would be eminently adviseable to shift registered office of company & all other infrastructure from Dehradun to New Delhi where ONGC building was recently inaugurated by PM in Vasant Kunj . Maintenance of residential & office infrastructure both at Dehradun & Delhi for board directors is causing wastage of hundreds of crore of rupees & also wastage of valuable professional time of senior officials in to & fro transit by air , notwithstanding protest from Uttarakhand govt., on purely political considerations. GOI must take very hard & yet logical decisions .
Having worked in petroleum sector for few years in Ministry side , i have some familiarity with these issues .Although issues raised by Sh Arun Saxena have their own relevance in the context of assessment done wrt his vast experience in the matter of appointment of functional & non functional directors on the board of all central govt PSUs .
