ONGC says it is losing money on Assam asset due to low production & high manpower

Nazira (Assam): State-run Oil and Natural Gas Corporation (ONGC) said on Tuesday that it is losing money in Assam because of low production and high employee headcount. The oil and gas major was countering the allegations of protesting employees over stoppage of contentious overtime payment. In a statement, ONGC said that it is hiring locally and is investing heavily in the development of the local community in Assam.

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Commenting on a sit-in by members of the ONGC Purbanchal Employees’ Association (OPEA) at the exploration and production PSU’s Assam Asset in Nazira, the company said the demonstration, while peaceful, has been primarily initiated as a protest against discontinuation of a particular overtime payment, “which was not admissible.”

“The company is losing money while continuing its operations at Assam for the last few years; one of the reasons being low production and high manpower,” it said.

ONGC counters claims made by employees’ union

It also said that the claim of the union that medical facilities have been stopped was “factually incorrect.” “The change from direct credit to reimbursement mode has been introduced to curb misuse and malpractice related to a unique welfare facility the company provides to its in-service as well as to its former employees,” it said. Notwithstanding financial pressures linked to rising production costs in the Assam Asset, ONGC continues to maintain a significant presence in the region, said the statement.

The company reiterated “its commitment to Assam through a wide range of Corporate Social Responsibility (CSR) initiatives. These include sustained investment in education, healthcare, infrastructure, and skill development. The Siu-Ka-Pha Hospital at Sivasagar is one such flagship project providing healthcare to the locals.”

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