The Hindu Business Line : ONGC set to recover dues from Gujarat PSUs

OIL & Natural Gas Corporation (ONGC) is finally expecting recovery of dues worth over Rs 6,000 crore from six State public sector undertakings (PSUs) and one municipal body in Gujarat. The dues have accumulated on account of supply of natural gas between 1982 and 1987 when marketing was directly handled by ONGC.

The defaulters are Iffco, Heavy Water Project, Baroda Municipal Corporation, Gujarat Electricity Board, Gujarat State Finance Corporation (GSFC), Gujarat Narmada Fertiliser Corporation (GNFC) and Gujarat Industrial Development Corporation (GIDC).

"One major defaulter has recently approached us expressing its interest in paying up the dues. The negotiation is in the final stages. We are expecting a breakthrough in the next few weeks," the ONGC Chairman, Mr Subir Raha, said here. "We expect the others to follow the same way sooner or later."

"The original sum defaulted was close to Rs 800 crore which had risen to the current level when charged with compound interest," he added.

The issue relating to recovery of dues had resulted in a war of words between ONGC and GAIL (India) Ltd in May-June this year. ONGC had threatened to snap supplies to the latter allegedly for its failure to discontinue supplies to the seven defaulting companies.

Asked about its differences with GAIL (India) over the issue, Mr Raha said that the company had been asked to discontinue supplies to the seven PSUs. "However, they (GAIL) did not pay heed to our request, forcing us to take some extreme measures."