Ram Naik rules out disinvestment in ONGC

ON BOARD SAGAR SAMRAT, AUG. 11. The Minister for Petroleum and Natural Gas, Mr. Ram Naik, today ruled out dilution of Government holding in the Oil and Natural Gas Corporation Ltd. (ONGC), Gas Authority of India Ltd. (GAIL) and Indian Oil Corporation (IOC).

Addressing a gathering of oilmen on board Sagar Samrat, the country's first jack-up rig, he said that the ONGC is strategically important and hence disinvestment cannot be allowed.

``Under no circumstances privatisation in the ONGC would be allowed,'' he said and added that disinvestment would also not be allowed in the GAIL and the IOC.

``I believe that privatisation of strategic organisations such as the Railways and the ONGC must not be allowed,'' he said, denying media reports of proposed disinvestment of oil companies.

Price deregulation

Price regulation on diesel, petrol, liquified petroleum gas and kerosene will be removed with effect from March 31, 2002, Mr. Ram Naik, said.

The price regulation for the aviation turbine fuel was removed from the beginning of this financial year.

At a press conference on-board the rig, Mr. Naik said this would increase competition which would finally benefit the consumers.

The ONGC is drawing up a plan to double its hydrocarbon reserves from six billion to 12 billion tonnes in the next two decades.

For this, the ONGC is implementing a systematic exploration plan from the blocks allotted to it earlier. It is now competing with other Indian and foreign oil companies for new exploration licensing policy (NELP) blocks and was able to bag 16 out of the 23 blocks awarded under the NELP- II.

The ONGC would invest around Rs. 7,500 crores in the Sakhalin offshore project in Russia, Mr. Ram Naik, said. It is a joint venture of the Russian national oil company, Rosneft, alongwith a Japanese consortium and Exonmobil.

The ONGC Videsh Ltd, the ONGC's overseas arm, has 50 per cent holding in the Russian company, which has 40 per cent stake in the entire project.

- UNI

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