Mismanagement, Corruption Causing Major Losses to Oil and Gas Companies: Congress

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Senior party leader and Rajya Sabha MP Shaktisinh Gohil claims that since 2014, India has suffered an annual loss of 3.695 million metric tonnes in petrol, diesel and gas production

NEW DELHI — The Congress has accused the Narendra Modi government of large-scale corruption and mismanagement in state-run oil and gas companies, Oil and Natural Gas Corporation (ONGC) and Gujarat State Petroleum Corporation (GSPC), noting that the country was suffering heavy losses in domestic petroleum and gas production due to policy failures and negligence.

Addressing a press conference here on Tuesday, senior party leader and Rajya Sabha MP Shaktisinh Gohil claimed that since 2014, India had suffered an annual loss of 3.695 million metric tonnes in petrol, diesel and gas production.

Demanding accountability from the prime minister, Gohil urged Modi to explain the decline in domestic production of petrol, diesel and gas, alleged corruption in GSPC, and the “false promises” made in 2005 regarding KG Basin reserves.

Highlighting the importance of Oil and Natural Gas Corporation, established in 1956 under former prime minister Jawaharlal Nehru, Gohil said ONGC contributes nearly 70 per cent of the country’s domestic oil and gas output, with 59 per cent of that production coming from the Mumbai High, Neelam and Heera offshore fields.

The Congress leader from Gujarat disclosed that the Modi government drastically reduced water injection operations — a scientific process used to maintain reservoir pressure and enhance oil recovery — in these major oil fields. According to him, water injection was reduced by 53 per cent in Mumbai High, 42 per cent in Neelam and 78 per cent in Heera field during the present government’s tenure.

Gohil further revealed that the failure to carry out timely overhauling of water injection systems and the use of untreated river water without proper chemical treatment and filtration had led to the growth of saline bacteria inside the wells, adversely affecting production.

Gohil also accused the government of neglecting critical pipeline maintenance operations. He said “pigging” — a process used for cleaning pipelines and removing corrosion and debris — was carried out far below the required schedule. He cited the example that in Mumbai High oilfield, where pigging operations were scheduled to be carried out 326 times in 2014-15, it was conducted only 83 times.

Taking a swipe at the government, Gohil alleged that it was indulging in corruption in a manner that remained invisible to ordinary citizens.

Referring to a June 6, 2005 statement made by Narendra Modi during his tenure as Gujarat Chief Minister, Gohil said Modi had claimed that 20 trillion cubic feet of oil and gas reserves had been discovered in the KG Basin, but “nothing substantial was found there”.

The Congress leader further alleged that Gujarat State Petroleum Corporation, once a profit-making company, was pushed into debt exceeding Rs 19,000 crore after investing heavily in KG Basin blocks and overseas ventures in Yemen, Indonesia and Australia. He claimed that not a single rupee from those foreign investments had been recovered.

Gohil said while the government publicly promoted the “Make in India” initiative, it was simultaneously weakening domestic energy production and increasing dependence on expensive fuel imports. He also referred to the weakening of the rupee against the US dollar.

Referring to his recent visit to Gujarat’s Saurashtra region, Gohil also alleged irregularities in diesel supply at petrol pumps. He claimed truck drivers were being restricted to purchasing only 25 litres of diesel despite long-distance travel requirements. According to him, petrol pump operators were under informal pressure from oil companies to limit diesel sales and push customers into purchasing mobil engine oil.

He further alleged that farmers were either being denied fuel in separate containers, apart from their tractors, or were being supplied only limited quantities.

In a sharp political attack, Gohil accused the prime minister of preaching fuel conservation to citizens while himself holding large-scale political rallies in Jamnagar, Somnath and Vadodara with extensive arrangements and undertaking frequent foreign visits.

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