ONGC's diversification into power and petrochemicals questioned

30-Nov-05

Petroleum Minister has questioned exploration major Oil and Natural Gas Corporation (ONGC)'s diversification into power and petrochemicals, reiterating that the company remains focused on the search for new oil and gas reserves. The timing of the shift of ONGC's focus to other areas to earn higher profits clashes with India's rising dependence on oil imports. Oil imports in India have risen from 70% last year to 76%. ONGC accounts for 80% of the 30-33 million tons of oil and about 65 million standard cubic metres of gas a day, produced in India. Despite the heavy burden of subsidies, royalties, taxes and dividend, ONGC is one of the largest revenue generators for the government, which holds 74% stake in the company.