The Hindu : National : OIL workers oppose disinvestment move

Online edition of India's National Newspaper
Friday, Dec 31, 2004

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OIL workers oppose disinvestment move

By Our Special Correspondent

GUWAHATI, DEC. 30. Executives and workers of Oil India Limited today opposed the Centre's proposed move to disinvest the profit-making public sector unit and transfer 47 per cent of its shares to the Indian Oil Corporation.

In a joint press conference, the Oil India Executive Employees Association (OIEEA) and the India Oil Workers' Union (IOWU) expressed apprehension that the disinvestment would have a cascading effect on society and economy of Assam and other States in the northeast.

The OIEEA general secretary, Ajit Kumar Barua, and the IOWU general secretary, P.L. Dowrah, alleged that through the proposed disinvestment the Government planned to take out Rs. 4,000 crores to meet the budget deficit of Rs. 1,30,000 crores. The move would be a prelude to privatisation and wipe off OIL from the exploration and production map of the country. Mr. Barua said that while IOC would pick up OIL's stakes at book value of Rs. 190, the market value of the shares would be around Rs. 400-500. "It is unfortunate that the disinvestment has been proposed at a time when Oil India Limited has embarked on a new mission to increase its crude oil production from the present three million tonnes to seven million tonnes within a period of 10 years."

During its 100 years of existence, OIL has been contributing towards the development of educational facilities, roads and bridges, promotion of sports, improvement of primary health care, drinking water facilities and employment to local youths. These activities would be adversely affected once the decision-making power goes to IOC, the two bodies said. "As the headquarters of IOC is outside Assam, the region will be deprived of all these developmental activities as any decision on undertaking such efforts will be taken on an all-India perspective without giving priority to the northeast region which is backward," Mr. Barua said.

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