|
Lok Sabha
In addition to concentrating on its areas of core competence, ONGC is exploring various options for diversification of its activities by forward and backward integration, including power generation. In this context, ONGC has signed MOUs with the governments of Gujarat and Karnataka for setting up Special Economic Zones at Dahej and Mangalore respectively, to facilitate development of the required infrastructure for ONGC’s value addition projects. All these projects are at a conceptual stage. ONGC has not signed any agreement with the State Governments for establishing gas based power plants. However, in view of unutilized gas, ONGC is also looking at the option of conversion of natural gas from isolated gas pools to power in Tripura. This would however, be dependent on the existence of the necessary infrastructure for evacuation of surplus power from the region, after meeting local needs.
From the national perspective of Energy Security, of which oil security is an essential component, ONGC remains committed to its core functions viz., the exploration and production of oil and gas. Diversification into other areas can only be supplemented to, and not at the cost of, concentration on its areas of core competence.
This was stated by Shri Mani Shankar Aiyar, Minister of Petroleum & Natural Gas, while replying to a question in the Lok Sabha today. Replying to supplementary questions he informed that general guidelines have been formulated to the effect that about 50% of the Profit After Tax (PAT) by ONGC should be invested in exploration and production of oil and gas, the areas of core competence of the company.
|
