Govt readies action plan to boost ONGC’s production
The government has proposed a detailed action plan to boost the dwindling oil and gas production of state-run Oil and Natural Gas Corporation (ONGC) that includes hiving off non-core businesses into separate companies, monetising existing infrastructure, decentralisation of decision-making on operational matters and partnerships with private energy majors, two officials familiar with the matter said on Monday.
In lines with the Atmanirbhar Bharat (Self-reliant India) policy, the government has decided to reduce India’s over-reliance on imported oil. It has set production targets of 40 million metric tonnes (MMT) of crude oil, and 50 billion cubic meters (BCM) of gas by 2023-24 where ONGC is tasked to contribute 70%, the officials said requesting anonymity. India imported over 89% of crude oil it processed in 2019-20.
“India’s domestic crude oil production is constantly on a decline. It is mainly because ONGC, which contributes about 70% of the domestic output, is unable to ramp up production from existing fields and could not add new fields under production.
