Gas organization paid Rs.18,600 cr. more in appropriations because of own oversight
State-run Oil and Natural Gas Corporation (ONGC) wound up paying an extra Rs.18,626 crore in sponsorships over the period 2011-12 to 2014-15 by exaggerating its unrefined petroleum yield, a CAG review has found.
"The organization needed to shoulder a bigger offer of appropriation because of exaggeration of reported unrefined petroleum creation by consideration of condensate and off-gas (7.06 for each penny of condensate and 1 for each penny of off-gas)," as indicated by a CAG report tabled in Parliament on Monday.
The report was very unmitigated in expressing that the estimation of unrefined petroleum generation ought exclude condensates and off-gas (a broke up gas in raw petroleum isolated amid the adjustment procedure of raw petroleum).
Extra appropriation
"The extra appropriation trouble borne by the organization was Rs.18,626.74 crore (that is, Rs.16,331.96 crore because of consideration of condensate and Rs.2,294.78 crore by virtue of incorporation of off-gas in unrefined petroleum creation) amid the period from 2011-12 to 2014-15," the report included.
Upstream national oil organizations, for example, ONGC and OIL shared the under-recuperations of oil advertising organizations that emerged from their selling petroleum items at financed rates. Under the appropriation sharing framework set up following 2012, an upstream organization's endowment weight was to be ascertained on the premise of its aggregate unrefined petroleum generation.
Further, the report found that the over-reporting of creation in Ankleshwar and Assam resources — by swelling shutting stock — had brought about an extra appropriation weight of Rs.160.69 crore.
Had it not over-expressed creation, ONGC would have missed its generation focuses for every one of the years under audit, the report found.
"By including BS&W (essential dregs and water) of 3.9 for every penny, off-gas of 1 for each penny, and recoverable inside utilization of 0.12 for every penny, the generation execution was over expressed," by report. "On the off chance that the genuine raw petroleum creation was accounted for, the organization would not have met its raw petroleum generation focuses in any of the years (2010-11 to 2014-15)."
The report likewise observed that this over-expressing of generation expanded the organization's compensation bill.
"As execution related pay (PRP) of its representatives is identified with accomplishment of generation targets, real creation reporting would have brought about lesser pay-outs of Rs.106.51 crore of PRP to the workers," the report said.
Noteworthy ramifications
"The noteworthy ramifications of consideration of condensate for determination of ONGC's offer of under-recuperations has been brought up with the Government," the Ministry of Petroleum and Natural Gas and the administration of ONGC said in its answer to the CAG.
"ONGC had engaged Government that in future just raw petroleum amount be considered for determination of ONGC's offer of under-recuperations and amount of gas condensate may not be incorporated, as it is neither unrefined petroleum nor is it sold," the answer, incorporated into the CAG report, said.
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