The Hindu Business Line : ONGC earns `Excellent' rating

The Department of Public Enterprises under the Ministry of Heavy Industries & Public Enterprises has rated the 2006 performance of Oil and Natural Gas Corporation Ltd (ONGC) as `Excellent'. In a statement issued here, the company said ONGC has secured a composite MoU score of 1.45 based on provisional results of fiscal 2005-06.

The final MoU score may improve to 1.375 (the lower the score, the better), as assessed internally by ONGC, based on audited results for 2006.

This is a significant improvement over last fiscal when ONGC secured `Very Good' with a composite MoU score of 1.77, the company said.

Out of 28 benchmarked parameters in its MoU with the Government, ONGC scored `Excellent' in 17 and `Very Good' in seven. It scored `Excellent' against all seven parameters listed under Static Financial Parameters. The company also scored `Excellent' against parameters such as reserve accretion, finding cost, project implementation, and capital expenditure.

ONGC is one of the public sector enterprises that have been signing MoUs with the Government since the concept's introduction in 1997-98. Over the years, the MoU scorecard has emerged as an efficient barometer to measure corporate performance. Performance evaluation is now outcome-oriented unlike in earlier years, when it was based more on physical inputs. Besides physical and operational performance, the MoU also evaluates performance in critical areas — R&D, HRD, corporate plans, and operational cost — through structurally quantified parameters.

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