New Delhi: Days after PSU Watch said in a report that the government is considering a proposal to hive off the transmission business of state-run Indian Oil, the employees have shot off an anxious letter to the management, asking them to comment on the matter. The news comes in the backdrop of the government giving a nod to the disinvestment of five PSUs — BPCL, SCI, CONCOR, THDC and NEEPCO.
In the letter dated December 20, the Indian Oil Officers' Association (IOOA) has said, "The select media reports indicating Indian Oil exploring the monetisation of pipelines assets, has created havoc among employees, which have serious risks of shattering the morale and dedication of employees across the country." Although in an official response to PSU Watch, the state-run refinery had categorically denied that any such plan was underway, sources have claimed otherwise. A day after the news was broken by PSU Watch, sources said that a director-level meeting took place in which the proposal to hive off Indian Oil's pipeline business was discussed.
"The 14,567-km pipeline network, having capacity of 94.16 MMTPA for liquid and 21.69 MMSCMD for gas, is the heart of Indian Oil, which has been built across the country over 50 years by the blood and sweat of committed and dedicated IOCians. The vast network of operating cross-country pipelines has been serving the nation, including our defence sector over the years, to meet the requirement of petroleum products. Removal of pipelines from Indian Oil umbrella will directly hit the overall performance of Indian Oil," the letter said. "The opportunity of government of India's disinvestment programme should be used to enhance the position of Indian Oil, to make it bigger and diversified, by acquisitions in upstream and Natural Gas business," the letter said.
"The oil and gas sectors across the world, in general, and in our country, in particular, are likely to face unprecedented challenges in the coming days in the light of fast technological changes as well as stress on margins in refining and petrochemical business. We are confident to cruise the challenges with hard work and dedication under your able leadership and guidance. However, the critical situation demand immediate denial by management regarding said news to keep the morale of every IOCians high, so that employees can perform in this competitive environment with full dedication to keep the flag of Indian Oil high," the employees said in the letter.
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