New Delhi: In a rare joint appeal, the Indian Oil Officers' Association (IOOA) and recognised trade unions have written separate letters to Union Petroleum Minister Hardeep Singh Puri, urging immediate intervention to halt what they describe as a “hasty and unilateral” restructuring of IndianOil’s pipeline operations. Both groups warn that the move, spearheaded under the so-called “Synergy” model, threatens operational safety, undermines employee morale, and compromises national energy security.
The IOOA, representing over 18,000 officers, warned that recent directives from the management—especially the proposed merger of the Pipelines Division into the Marketing Division—could destabilise the operational integrity of India’s largest oil company. “This restructuring, marked by a distressing lack of consultation and transparency, is causing deep-seated anxiety,” the association wrote in its letter dated July 21, calling the pipeline network a “strategic national asset” that cannot be compromised.
The trade unions, in a parallel representation, echoed these concerns, specifically opposing the proposed integration of 40 pipeline stations into the Marketing Division. “The IOCL Management appears to be advancing this proposal in haste, without conducting a comprehensive analysis of its tangible benefits,” their letter stated.
Both letters strongly contest the safety implications of the Synergy plan. The unions cautioned that the merger will “place an overwhelming burden on a reduced team” responsible for managing high-pressure pipelines, heightening the risk of delayed emergency response and potential disasters. “Any incident in a highly pressurised hydrocarbon pipeline can have catastrophic consequences… including fires, explosions, and environmental damage,” the union wrote, noting that many pipelines pass through densely populated and agricultural regions.
The IOOA added that outsourcing operations of strategic infrastructure like Aviation Fuel Stations and LPG terminals to private players could further erode institutional safety culture and jeopardise national interests during crises.
The IOOA’s letter details a broader set of objections. It describes a series of top-down decisions — such as declaring captive pipelines as "common carrier" under PNGRB regulations and blanket cost-cutting measures — as “demoralising” and harmful to the long-term health of the company. They warned that these changes disincentivise future investment in vital infrastructure and dilute Indian Oil’s ability to act in the national interest.
The association also questioned the logic of restructuring a high-performing PSU. “In FY 2023–24, Indian Oil achieved its highest-ever profit after tax of Rs 39,619 crore,” the letter noted, citing this as evidence of the company’s robust operations and prudent management.
Both the officers and the unions have requested a pause in the restructuring rollout and urged the minister to initiate transparent consultations with all stakeholders.
“We firmly believe that true organisational transformation should not be about downsizing or dismantling, but about optimising processes… for nation-building,” the IOOA stated.
The letters have also been copied to the Prime Minister’s Office, the Minister of State for Petroleum and Natural Gas, the Petroleum Secretary, and the Chairman of Indian Oil Corporation Ltd. PSU Watch has sent a list of questions to the Indian Oil spokesperson but has not received any response until the time of publication of this story. This story will be updated when a response is received.
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